Lecture-2

Lecture-2 - Lecture 2: National Income Accounting Reference...

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1 Lecture 2: National Income Accounting Reference - Chapter 5 LEARNING OBJECTIVES 5.1 What gross domestic product (GDP) is, and how to measure it. 5.2 Other measures of a nation’s production of goods and services. 5.3 The distinction between nominal GDP and Real GDP 5.4 The shortcomings of GDP as a measure of domestic output and well-being.
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2 NATIONAL INCOME ACCOUNTING National income accounting is the technique used to measure the overall production of the economy and other related variables for the nation as a whole. GROSS DOMESTIC PRODUCT (GDP) GDP is the total market value of all final goods and services produced in a given year within the boundaries of a country. - Japanese-owned factory in ON - It is a monetary measure of the output of a nation Three Approaches to Measure GDP 1) Product Approach or Value Added Approach 2) Expenditures Approach 3) Income Approach
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3 1) Product or Value Added Approach The product approach defines a nation’s GDP as the market value of final goods and services newly produced within a nation during a fixed period of time.
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Lecture-2 - Lecture 2: National Income Accounting Reference...

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