Lecture 4 - 1 1 Measuring the Economy ¡ Key Points ¢...

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Unformatted text preview: 1 1 Measuring the Economy ¡ Key Points ¢ Circular Flow ¢ NIPA ¢ GDP concepts ¢ Value Added ¢ Real vs. Nominal GDP ¢ Deflators ¢ Welfare Comparisons Circular flow Antigrowth Macro (episode 20) 2 In the News? ¡ 3 Course Issues ¢ Gradebook ¢ Investment Game ¢ Videos - $1 ¢ Assignment 4 Thursday ¢ Inv Game Room ¢ Courses Careers room ¢ Hybrid – 2B ugh/ 3b? 2 4 What is (Nominal) GDP? ¡ Expenditures on Newly Produced final goods and services valued at market prices by factors located in U.S. 1. Total flow 1. Stock vs flow 2. newly produced 3. final goods and services 4. valued at market prices 1. Why? 5. Factors located in U.S. 1. Vs GNP 1. Buy $20 of food, $15 snacks, $15 entertainment, $30 soda GDP=$80 spending on final goods and services 5 6 How do we calculate Nominal GDP? ¡ 1. Spending by Type of Expenditures ¢ C+I+G+X-M ¡ 2. Income Generated by Type of Income ¢ Comp of Employees + Corp Profits + Rental Income +Interest + Prop. Income ¡ 3. How Disposed of ¢ C+S+T+Foreign Transfers ¡ 4. Sum of Value Added ¡ Surveys ¡ Note nom GDP = P x Q ¢ Up if P or Q or both 3...
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This note was uploaded on 02/15/2010 for the course ECONOMICS 220:103 taught by Professor Sheflin during the Spring '08 term at Rutgers.

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Lecture 4 - 1 1 Measuring the Economy ¡ Key Points ¢...

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