ECON 272

In Class Exercise Four - GDP

1.  What is GDP attempting to measure in an economy? 

2.  Why are transfer payments and interest payments on the government debt not included in GDP?  Explain. 

3. Why are exports included in GDP but not imports?  Explain. 

4. What is the difference between real and nominal GDP? 

5. Name something that is omitted from GDP that should be counted (that we discussed in class).

6.  What questions do you still have about this material?