Ch3_summary (uploaded on Sept18)

Ch3_summary (uploaded on Sept18) - The expenditure approach...

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he expenditure approach is to a d up the value of ` The expenditure approach is to add up the value of final goods and services produced in the domestic economy. [Final goods are products that are not used y[ gp as inputs by other firms, at least not in the period of time under consideration.] ` The valued-added approach is to add up the total value added from domestic production. [Value added = venue ost of intermediate goods where revenue – cost of intermediate goods, where intermediate goods are outputs of some firms that are sed as inputs by other firms.] used as inputs by other firms.] ` The income approach is to add all incomes received by the producers of output, including wages received by workers and profits received by owners of firms. 95
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Steel Co. (Firm1—produce intermediate Car Co. (Firm 2) goods) Sales revenue $100 Sales revenue $200 Wages $80 Wages $70 Profit $20 Steel purchases $100 Profit $30 96
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: EACHING acro ebct h13 table1 2 3 pdf ` D:\TEACHING\macro\webct\ch13_table1_2_3.pdf 97
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This note was uploaded on 02/19/2011 for the course ECON 1021 taught by Professor Kokwanwai during the Fall '08 term at CUHK.

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Ch3_summary (uploaded on Sept18) - The expenditure approach...

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