Economics - GDP Due October 16

Economics - GDP Due October 16 - Airton da Silva Eco-215-02...

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Airton da Silva Eco-215-02 Macroeconomics Mr. Lawless 10/15/06 Gross Domestic Product 1) The difference between an intermediate good and a final good is that an intermediate good or service is a good or service that is produced by one firm, bought by another firm, and used as a component of a final good or service. While a final good or service is a good or service that is produced for its final user and not as a component of another good or service. Yes, a good or service can be considered both an intermediate and a final good. 2) The expenditure approach to measuring GDP is the sum of consumption expenditure, investment, government expenditure on goods and services, and net exports. Adding up expenditure provide a measure of the Gross Domestic Product because it shows how much money is spent within the calculated period due to the fact that the value of production equals income equals expenditure, meaning that whatever we are able to spend, is how much money total there actually is flowing through the economy. Some
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This note was uploaded on 09/06/2008 for the course ECONOMICS 215 taught by Professor Lawless during the Fall '08 term at Quinsigamond.

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Economics - GDP Due October 16 - Airton da Silva Eco-215-02...

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