Unformatted text preview: (super equal sign “must be equal”) inventory accumulation is possible because of an accumulation of inventory of the years can sell more than produced in one year; counted as part of expenditure capital = not financial; real goods question: Why measure GDP by the incomes earned by the factors of production? satisfies an important accounting principle data collection procedures are possible *basic GDP identity *actual vs. planned magnitudes see next week disadvantage of nominal GDP: changes in nominal GDP pick up BOTH changes in prices and changes in output (whereas we want to separate the two) calculating real GDP – keep constant by using only base year prices to calculate GDP changes in real GDP pick up only changes in output...
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This note was uploaded on 01/12/2012 for the course ECON AS.180.101 taught by Professor Maccini during the Fall '08 term at Johns Hopkins.
- Fall '08