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Unit 7Text: Gross Domestic Product(国内生产总值) 1. Key words 2. Calculating gross domestic product 3. GDP and GNP 4. GDP and NDP 5. Real and nominal GDP 6. Growth and GDP 7. Problems of GDP measurement 8. Translate the following into Chinese 9. Questions 1. Key words GDP GNP NDP final goods per capita GDP intermediate goods double counting value added market price indirect taxes factor cost national income accounts nominal GDP labor force factor of production environmental pollution and degradation adjusted GNP series 2. Calculating gross domestic product 2.1 Definition of gross domestic product 2.2 Subtleties in the calculation of GDP 2.1 Definition of gross domestic product Gross Domestic Product (GDP) is the value of all final goods and services produced in the country within a given period. The output of each of these is valued at its market price, and values are added together to get GDP. 2.2 Subtleties in the calculation of GDP 2.2.1 Final goods and value added 2.2.2 Current output 2.2.3 Market prices 2.2.1 Final goods and value added GDP is the value of final goods and services produced. The insistence on final goods and services is simply to make sure that we do not double-count. In practice, double counting is avoided by working with value added. At each state of the manufacture of a good, only the value added to the good at that stage of manufacture is counted as part of GDP. 2.2.2 Current output GDP consists of the value of output currently produced. 2.2.3 Market prices GDP values goods at market prices. Valuation at market prices is a principle that is not uniformly applied, because there are some components of GDP that are difficult to value. There 3. GDP and GNP GNP is the value of final goods and services produced by domestically owned factors of production within a given period. The difference between GDP and GNP arises because some of the output produced within a given country is made by factors of production owned abroad. The differe
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