CH2 ECO 3203 - What are net exports? What is value added?...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Measuring GDP, Unemployment, and Inflation: Chapter 2 Basic definition of GDP: the total dollar value of the newly produced final goods and services in the economy for some period of time. Which counts in GDP? Company A produces 100 computers Company B produces 100 tires and sells them to company C Joe is a handyman on the weekend Mary is a homemaker Jane is a Merry Maid The government pays company D to produce a new fighter jet Edna owns an antique shop How do we measure GDP? Expenditure approach Income approach Value added or production approach What is consumption? What is investment? What is an intermediate good? What is a capital good? What is a stock variable? What is a government transfer payment? How do we calculate the government budget balance?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: What are net exports? What is value added? What are the different types of income that we measure? What is value added? Limitations of the GDP measure Real vs. nominal GDP How do we calculate the unemployment rate? 2 What does the labor force participation rate measure? How do we calculate the inflation rate? What is the GDP deflator? How is it calculated? What is the difference between a real variable and a nominal variable? Why are most macroeconomic variables measured in real terms? How can you convert your nominal income in a given year to real income? Why would you want to do this? Why would it be valid to say that sometimes the official inflation rate will overstate inflation from your point of view?...
View Full Document

This note was uploaded on 11/08/2011 for the course ECO 3203 taught by Professor Yang during the Fall '10 term at University of Central Florida.

Page1 / 2

CH2 ECO 3203 - What are net exports? What is value added?...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online