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Unformatted text preview: 7. Personal Income This is a persons total earnings from labor, investments, etc. 8. Disposable Income This is an individuals personal income, minus taxation, etc. 9. Business Cycle If the Real GDP is experiencing major fluctuations (ups and downs), economists say that the economy is going through a business cycle. Question 1 This could be good or bad. If the GDP goes up, and we have a way to sell the extra goods produced, it is good. If the GDP goes up, and no-one is buying, then we have a surplus which is not good. Question 2 C and D Question 5 Used goods are omitted, because they have already been counted in the GDP once, and you dont double count your goods. Financial transactions are omitted because they dont represent new assets being produced. Government Transfer Payments are excluded because they are not being paid out in return for goods or services. ....
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This note was uploaded on 11/26/2010 for the course ECON 2301 taught by Professor Camp,r during the Fall '08 term at Trinity Valley Community College.
- Fall '08
- Gross Domestic Product (GDP)