Intermediate Macroeconomics Ch2 notes

Intermediate Macroeconomics Ch2 notes - Chapter 2: National...

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Chapter 2: National Income Accounting The Production of Output Gross Domestic Product, GDP This is the current market value of all the final goods and services produced in an economy in a given period of time. Gross National Product, GNP The current market value of all the final goods and services produced by the production factors owned by an economy. Net Domestic Product, NDP GDP - depreciation Nation Income, NI NDP - indirect business tax (consumption tax) Component of Demand National Income Accounting Identity: Y = C + I + G + NX or Y = C + I + G + X – M Consumption, C It includes all the private spending on goods and services. It is the largest component of GDP. Government Spending, G It measures all the public expenditures on goods and services. Transfer payments, TR, is a form of public spending. It will be considered separately only when its value is not included in private consumption. Investment, I
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This note was uploaded on 02/19/2009 for the course ECIF ECIF200 taught by Professor Henry during the Spring '09 term at University of Manchester.

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Intermediate Macroeconomics Ch2 notes - Chapter 2: National...

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