chapter 5 notes - ECON 201 notes Chapter 5 Gross Domestic...

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ECON 201 notes Chapter 5 Gross Domestic Product Gross national product (GNP): the market value of all final goods and services produced by a nation’s residents, no matter where they are located Transfer payment: a government payment to individuals not in exchange for good or services currently produced Final goods: finished good and services produced for the ultimate user Intermediate goods: goods and services used as inputs for the production of final goods Circular flow model: A diagram showing the flow of products from business to households and the flow of resources from households to business. In exchange for these resources, money payments flow between business and households. Flow: a flow is a rate of change in quantity during a given time period, such as dollars per year. For example, income and consumption are flows that occur per week, per month, or per year. Stock: a quantity measure at one point in time – for example , an inventory of goods or the amount of money in a checking account. Expenditure approach: the national income accounting method that measures GDP by adding all the spending for final goods during a period of time
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This note was uploaded on 04/02/2008 for the course ACC 240 taught by Professor Lewis during the Winter '08 term at Eastern Michigan University.

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chapter 5 notes - ECON 201 notes Chapter 5 Gross Domestic...

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