chapter 7 - CHAPTER 7: GDP: Measuring Total Production and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CHAPTER 7: GDP: Measuring Total Production and Income Business cycle, Expansion, Recession, Economic growth, Inflation rate. T HE M EASUREMENT OF G ROSS D OMESTIC P RODUCT GROSS DOMESTIC PRODUCT (GDP): Tries to be as comprehensive as possible. LEGAL GOODS ONLY. Production is measured in value or dollar terms and not in quantities. Final goods only to avoid DOUBLE COUNTING . Solve 1.7, pg 234 Produced must be within the given time Within a country The Components of GDP CONSUMPTION: Spending on services: Non-durable goods: Durable goods INVESTMENT: Business fixed investment: Residential Investment Changes in business inventories. GOV PURCHASES: Transfer payments not included NET EXPORTS: NX = Exports - Imports Y=C+I+G+NX This is expenditure method by adding together all expenditures on final goods and services. Solve 1.9, pg 234 Measuring GDP by the Value-Added Method e.g. pg 221 from book Production and Income The sum of wages, rent, interest and profits is total income received by households and this is the...
View Full Document

This note was uploaded on 02/02/2010 for the course ECON 2020 taught by Professor Kaplan,jul during the Spring '08 term at Colorado.

Page1 / 3

chapter 7 - CHAPTER 7: GDP: Measuring Total Production and...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online