CHAPTER 24 OUTLINE

CHAPTER 24 OUTLINE - Economics Chapter 24 Outline National Income Accounting Measures the economys overall performance Gross Domestic Product(GDP

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Economics Chapter 24 Outline National Income Accounting - Measures the economy’s overall performance. Gross Domestic Product (GDP) - Defines the aggregate output as the dollar value of all final goods and services produced within the borders of a given country during a given period of time (typically a year) (Monetary measure of market value of all vital goods and services within a country within a year. Monetary Measure- What the GDP does. Avoiding Multiple Counting Intermediate Goods - Goods and services that are purchased for resale or for further processing or manufacturing. Final Goods - Are consumption goods, capital goods, and services that are purchased by their final users, rather than for resale or for further processing or manufacturing. Multiple Counting -Wrongly including the value of intermediate goods in the gross domestic product; counting the same good or service more than once. This will cause a distortion in the value GDP. Value Added- Market Value of a firm’s output less the value of the imputs the firm has bought from others. GDP Excludes Nonproduction Transactions
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This note was uploaded on 10/01/2010 for the course ECO 2013 taught by Professor Haroldj.vanboven during the Fall '09 term at Edison State College.

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CHAPTER 24 OUTLINE - Economics Chapter 24 Outline National Income Accounting Measures the economys overall performance Gross Domestic Product(GDP

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