Econ 104-6 - Econ1046 18:29 October5thnextquiz /GDP...

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Econ 104-6 18:29 October 5 th  next quiz. Understanding national income/GDP National income/GDP and the wealth of nations Adam Smith – Wealth of Nations Why are some countries rich and others poor? First step in figuring out such questions is being able to measure wealth and income of  countries Differences between wealth and income of nations Flow vs. Stock Water flowing into bathtub vs. water stored up in tub Wealth = Assets – Liabilities = “net worth” All physical assets owned by everyone Measures of GDP By income type… GDP by income = Total wages/benefits + total profits We can divide this further into interests, dividends, taxes, wages, health insurance by spending in country Household consumption spending + business investments + government spending +  exports – imports GDP = C + I + G (X – M) US Income and Wealth: GDP and Net Worth US GDP for 2010 - $14.7 trillion, USA Per Capita = 26,860
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This note was uploaded on 10/24/2011 for the course ECON 104 taught by Professor Dolenc during the Fall '08 term at UMass (Amherst).

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Econ 104-6 - Econ1046 18:29 October5thnextquiz /GDP...

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