10.21.10 - 10.21.2010 Measuring Domestic Output and National Income Assessing the Economys Performance National income accounting operates in much the

10.21.2010 Measuring Domestic Output and National Income  Assessing the Economy’s Performance • National income accounting – operates in much the same way for the economy as a whole • Bureau of economic Analysis (BEA) – agency of the Commerce Department ⌐ Assess health of economy ⌐ Track long run course ⌐ Formulate policy • Federal Reserve => Beige Book ⌐ Commentary on economic conditions ⌐ Information gathered from business contacts, economists, market experts  Gross Domestic Product ⌐ Gross domestic product (GDP) – defines 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 • A Monetary Measure • Avoiding Multiple Counting ⌐ Intermediate goods – goods and services that are purchased for resale or for further processing or manufacturing ⌐ Final goods – consumption goods, capital goods, and services that are purchased by their final users, rather than for resale or for further processing or manufacturing ⌐