Ch.7_Tracking_the_Macroeconomy

Ch.7_Tracking_the_Macroeconomy - Ch.7: Tracking the...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Ch.7: Tracking the Macroeconomy Gross Domestic Product (GDP): market value of all the final goods and services produced within a country in a given time period (year). Intermediate Goods : Are Goods and Services that are produced for further processing or manufacturing I. 3 Ways to Measure GDP 1. Value Added Approach Dairy Farmer Ice Cream Factory Cold Stone $250 $400 $500 Value Added : is the value of its sales minus the value of its purchase of inputs Cold Stone: Ice Cream Fact: Dairy Farmer: 2. Expenditure Approach: Who buys Goods and Services? GDP = C + I + G +NX C = A. Durables: B. Nondurables: C. Services: I = Investment
Background image of page 1

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

View Full DocumentRight Arrow Icon
G = NX = Export - Imports 3. Income Approach 1) 2) 3) 4) II. What’s Not Included? 1) Transfer Payments 2) Financial Assets Stocks: proof of ownership Bonds: Promise to repay a loan 3) Used Goods III. Comparing GDP Across Time: Somewhat Problematic due to: 1) Inflation:
Background image of page 2
2) Deflation: I-----|-----|------|-----|-----I I-------------------------------------------I 2 Types of GDP
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/05/2011 for the course ECON 101 taught by Professor Dezhbakhsh during the Fall '07 term at Emory.

Page1 / 10

Ch.7_Tracking_the_Macroeconomy - Ch.7: Tracking the...

This preview shows document pages 1 - 4. Sign up to view the full document.

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