Macro2105 notes pt1 - III. Expenditure approach (each one...

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MacroEconomics 2105 I. GDP (gross domestic product) = Consumption + Investment + Government spending + (Exports – Imports) A. Government spending EXCLUDES payments made to individuals (ie., unemployment, welfare, etc. (also known as entitlements) B. Monetary #, represents dollar amount spent on gross domestic products from the US II. Income approach A. sum of wages, rents, interest, profits = national income B. assuming income is accurately depicted, entitlements (income provided by government) are NOT associated w/ any out put
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Unformatted text preview: III. Expenditure approach (each one reps. Sectors) A. Personal consumption i. durable goods last longer than a year ii. non durable – less than a year iii. services B. Private domestic investment i. Machine, equipment, tools ( when companies purchase) ii. construction for business structures and personal family dwellings iii. net change in inventory C. Government Purchases i. all levels of gov't purchase of goods and services ii. EXCLUDES TRANSFER PAYMENTS (entitlements)...
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This note was uploaded on 12/04/2011 for the course ECON 2105 taught by Professor Bredfelt during the Spring '11 term at Middle Georgia State College.

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