Chapter 5 Measuring a Nation's Income

Chapter 5 Measuring a Nation's Income - 5-1Chapter 5:...

Info iconThis preview shows pages 1–19. 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

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight 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: 5-1Chapter 5: Measuring a Nations IncomeGross Domestic Product - GDP5-2oGDP is basically a production conceptoGDP is a flow variableoMarket Value5-3Example:oIn the national accounts, firms and the government are the units which produce output in the domestic economy5-4oFinal and intermediate goods and services5-5Items not included in GDP:oUsed or second hand goodsoNon-marketed goods and servicesoFinancial assets 5-6How Do We Actually Measure GDP? Three Methods:oValue-added (production) Approach oExpenditure Approach5-7oIncome Approach5-8Value-Added ExampleStage of ProductionValue of salesCost of intermediate productsValue added = Total value - Cost of intermediate productsContribution to GDP:5-9Total value of all transactions: Income ApproachFactorsCompensationLandLabourCapitalEntrepreneurship5-10Income Approach to Measuring GDPFirst determine: Net Domestic Income at Factor Cost5-11Add the following to Net Domestic Income at Factor Cost to obtain GDP:5-12Expenditure ApproachC - I - 5-13G - Government Expenditure on Goods and ServicesNX - Net Exports5-14Gross National Product (GNP)Investment IncomeGNP =oGDP 5-15Problem:oIn 1995: oGDP was $780B5-16Other Key National Accounts ConceptsPersonal Disposable IncomeoConsumption (C) + Savings (S)Personal (Private) Saving5-17b.Nominal GDP vs. Real GDP c.GDP Deflator iv.Inflation Rate 5-185-19...
View Full Document

This note was uploaded on 10/21/2010 for the course ECON 102 taught by Professor ? during the Fall '08 term at Waterloo.

Page1 / 26

Chapter 5 Measuring a Nation's Income - 5-1Chapter 5:...

This preview shows document pages 1 - 19. Sign up to view the full document.

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