chapter5 - Chapter 5 National Income Accounting...

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Chapter 5 National –Income Accounting National-income accounting : Measurement of aggregate economic activity, particularly national income and its components. Gross domestic product (GDP) : The total market value of final output produced within a nation’s borders in a given time period. Gross National Product (GNP) : Output produced by nation’s factors of production no matter where it takes place. GDP per capita : Total GDP divided by total population; average GDP (used as measure of country’s standard of living) Measurement Problems Non-Market Activities – Goods and services produced that are not sold in a market Unreported Income – Market activities not reported to tax or census authorities Intermediate goods : Goods or services purchase for use as input in the production of final goods or services Value added : The increase in the market value of a product that takes place at each stage of the production process. Two ways to calculate GDP
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This note was uploaded on 02/14/2012 for the course ECON 20913 taught by Professor Rogerfrantz during the Fall '10 term at San Diego State.

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chapter5 - Chapter 5 National Income Accounting...

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