National income accounting

National income accounting - Lecture #2 National Income...

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Econ 1110, Spring 2008, Professor Te 1 Lecture #2 National Income Accounting
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Econ 1110, Spring 2008, Professor Te 2 Three (Equivalent) Approaches to Measuring Economic Activity Product Approach (Value Added) Expenditure Approach Income Approach
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Econ 1110, Spring 2008, Professor Te 3 GDP: Product Approach Market Value Newly Produced Final Goods and Services Value added vs. intermediate goods Households Sugar ($35M) Coke Households Final goods = Value added = Produced within a Country GNP = GDP + NFP $10M $25M $40M $10M sugar + $40M coke = $50M $35M sugar + $15M coke = $50M
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Econ 1110, Spring 2008, Professor Te 4 U.S. GDP, Product Approach, 2004 $billions % of GDP Private Industries 10,276.6 87.6 Agriculture, Forestry, Fishing, Hunting 116.6 1.0 Mining 147.5 1.3 Utilities 241.2 2.1 Construction 541.4 4.6 Manufacturing 1,494.0 12.7 Wholesale Trade 688.1 5.9 Retail Trade 797.6 6.8 Transportation and Warehousing 338.6 2.9 Information 547.2 4.7 Finance, Insurance, Real Estate, Rental, and Leasing 2,423.7 20.7 Professional and Business Services 1,341.4 11.4 Educational Services, Health Care, and Social Assistance 903.9 7.7 Arts, Entertainment, Recreation, Accomodation and Food Services 419.8 3.6 Other Services, except government 275.5 2.3 Government 1,458.4 12.4 Gross Domestic Product (GDP) 11,735.0 100.0 Private goods-producing industries 2,299.5 19.6 Private services-producing industries 7,977.0 68.0
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Econ 1110, Spring 2008, Professor Te 5 GDP: Expenditure Approach Y = C + I + G + NX Consumption ( C ) Investment ( I ) Government Purchases ( G ) Net Exports ( NX )
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Econ 1110, Spring 2008, Professor Te 6 U.S. GDP, Expenditure Approach 2005-III $billions % of GDP Consumption 8845.4 70.2 Investment (GPDI) 2097.6 16.6 Government Purchases 2392.2 19.0 Net Exports -734.2 -5.8 GDP 12,601.0 100.0
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This note was uploaded on 04/15/2008 for the course ECON 1110 taught by Professor Tedloch-temzelides during the Spring '08 term at Pittsburgh.

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National income accounting - Lecture #2 National Income...

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