Download Your Reward for Hard Work Your paycheck should reflect your gross

Raising Funds
How a business manages its
finances is a key factor in whether
or not that business succeeds.
Where do businesses find the
money to get started?
Lesson Objective
Explain and compute the gross domestic product.
Content Vocabulary
gross domestic product
(GDP)
real GDP
per capita GDP
gross
real
per
capita
GDP
domestic
GDP product (GDP)
The gross
total value
domestic
of theproduct
goods of
adjusted
and
a country
services
to
produced
include
distributed
theinover
effects
a country
theofpopulation,
inflation.
in a givenoryear,
the GDP
used
to monitor
per
person,the
which
health
indicates
of a country’s
a nation’s
economy.of living.
standard
Example 1
The United States has an inflation rate of 1.9
percent and a GDP of $10,253.2 billion.
What is the real GDP?
Example 1 Answer
Step: Find the real GDP.
GDP – (GDP × Inflation Rate)
$10,253.2 billion – ($10,253.2 billion × 1.9%)
$10,253.2 billion – $194.8 billion = $10,058.4 billion
Example 2
The United States has a population of
284,796,887 and a GDP of $10,253.2 billion.
What is the per capita GDP?
Example 2 Answer
Step: Find the per capita GDP.
GDP ÷ Population
$10,253,200,000,000 ÷ 284,796,887 =
$36,001.798 or $36,001.80
Practice 1
Find the real GDP.
GDP: $34,300,000,000
Inflation rate: 6 percent
Practice 1 Answer
$32,242,000,000
Practice 2
Find the per capita GDP.
GDP: $76.5 billion
Population: 2.4 million
Practice 2 Answer
$31,875