Measuring the economy's performance

Measuring the economy's performance - Econ :101 Chapter: 8...

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Econ :101 Chapter: 8 Measuring the Economy’s Performance
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Learning objectives Describe the circular Flow of income and output National Income accounting Characteristics of GDP Explain the expenditure approach to compute GDP Explain the income approach to compute GDP Distinguish between Nominal GDP and Real GDP
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Circular flow of Income and output BUSINESSES HOUSEHOLDS RESOURCE MARKET RESOURCES INPUTS $ COSTS $ INCOMES PRODUCT MARKET SERVICES SERVICES $ CONSUMPTION $ REVENUE
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The Importance of National Income accounting Health of the Economy Comparisons Over Time Formulation of Public Policy What Are These Accounting Measures?
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GROSS DOMESTIC PRODUCT The total market value of all final goods and services produced within the borders of the U.S.in a given year o
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Characteristics A Monetary Measure Avoid Multiple Counting Final Goods Excludes Intermediate Goods Value Added
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Characteristics- GDP Excludes Nonproduction Transactions Financial Transactions Public Transfer Payments Private Transfer Payments Stock Market Transactions Second hand sales
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TWO APPROACHES 1.EXPENDITURE APPROACH 2.INCOME APPROACH
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This note was uploaded on 06/06/2011 for the course ECON 101 taught by Professor Dsliva during the Summer '11 term at Moraine Valley Community College.

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Measuring the economy's performance - Econ :101 Chapter: 8...

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