JAN 21-23 EC

JAN 21-23 EC - Inventory accumulation Net exports= exports-...

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1/21-23 EC Rebekah Kim The Most Fundamental Macro Concept: GDP (cont.) GDP- gross domestic product. Market value of all final goods and services  produced within a country in a year. Measuring GDP- process called “ national income accounting” Calculated by the Bureau of Economic analysis- a division of the Dept. of  Commerce. Calculating GDP…. Expenditure Method Value added method- adding the additional value. Investment- businesses by a new good Spending on captial equipment, inventories, and structures Including household purchases of new housing
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Unformatted text preview: Inventory accumulation Net exports= exports- imports Exports Spending on domestically produced goods by foreigners Imports GDP and its components Nominal GDP v. Real GDP nominal gdp = value of all goods and services measured at current prices. o Assume there are N goods produced in the economy: Take PRICE of good x the QUANTITY of the good produced. Real GDP is the value of all goods and services measured at a constant price level. 23/01/2009 11:13:00 23/01/2009 11:13:00...
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This note was uploaded on 04/01/2009 for the course EC 102 taught by Professor Zagorsky during the Spring '08 term at BU.

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JAN 21-23 EC - Inventory accumulation Net exports= exports-...

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