econ101fall11lecture3

econ101fall11lecture3 - National Income Accounting Required...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
National Income Accounting Required Readings • Chapter 5—pp. 87-91 • Chapter 6--Appendix • Chapter 8—pp. 148-151 • Chapter 8--Appendix
Background image of page 1

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

View Full DocumentRight Arrow Icon
What is GDP? GDP is Gross Domestic Product Nominal GDP is the sum of the money value of the final output of all goods and services in the domestic economy during a period of time
Background image of page 2
Key Words Nominal GDP: Money Value: Final Output:
Background image of page 3

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

View Full DocumentRight Arrow Icon
Key Words-Continued All Goods and Services: Domestic Output: Period of Time:
Background image of page 4
GDP Measuring Methods • Expenditure approach • Factor Income approach • Value Added approach
Background image of page 5

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

View Full DocumentRight Arrow Icon
Expenditure Approach NB: Superscript N denotes Nominal = C + I + G + X - M NN N N Exp GDP
Background image of page 6
Basic Idea measures GDP by the expenditures on final output by: Consumers Business firms Governments N Exp GDP
Background image of page 7

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

View Full DocumentRight Arrow Icon
Definitions Consumer Expenditures = Expenditures on final output by consumers = Investment Expenditures = Expenditures on final output by business firms & consumers New Plant & Eq N N C I uipment Expenditures by firms Purchases of New Housing by consumers Inventory Accumulation (Decumulation) by firms
Background image of page 8
= Government Expenditures = Expenditures on final output by Federal & State & Local Governments = Exports = Expenditures by foreigners on final output produced in the US = Imports N N N G X M = Expenditures by US citizens on final output produced abroad
Background image of page 9

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

View Full DocumentRight Arrow Icon
What Investment Does Not Include • Does not include • Does not include
Background image of page 10
A Question • GDP is the money value of final output produced • Why measure GDP by the expenditure on final output of goods & services?
Background image of page 11

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

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 46

econ101fall11lecture3 - National Income Accounting Required...

This preview shows document pages 1 - 12. Sign up to view the full document.

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