Class 1 example gva steel industry 120 gva car

Info icon This preview shows pages 14–24. Sign up to view the full content.

View Full Document Right Arrow Icon
Class 1
Image of page 14

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

View Full Document Right Arrow Icon
Example GVA steel industry : 120. GVA car industry : 110 GDP is 230 ( < 330). If all ±rms merge in the economy : GDP is equal to total production GDP is the only aggregation process which is not a/ected by mergers and acquisitions, i.e. boundaries of the ±rms. GDP is a °ow (annualized). Class 1
Image of page 15
Example GVA steel industry : 120. GVA car industry : 110 GDP is 230 ( < 330). If all ±rms merge in the economy : GDP is equal to total production GDP is the only aggregation process which is not a/ected by mergers and acquisitions, i.e. boundaries of the ±rms. GDP is a °ow (annualized). GDP 6 = Net Domestic Product do not consider the depreciation of capital in production. Class 1
Image of page 16

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

View Full Document Right Arrow Icon
Example GVA steel industry : 120. GVA car industry : 110 GDP is 230 ( < 330). If all ±rms merge in the economy : GDP is equal to total production GDP is the only aggregation process which is not a/ected by mergers and acquisitions, i.e. boundaries of the ±rms. GDP is a °ow (annualized). GDP 6 = Net Domestic Product do not consider the depreciation of capital in production. GDP 6 = Gross National Product. Do not consider the production abroad of ±rms owned by residents. Class 1
Image of page 17
Expenditure Approach Goods which are sold, are bought by someone else. Four Expenditure Categories: 1 Consumption spending (C): Goods and services that are ultimately bought and used by households (except for newly constructed buildings) Class 1
Image of page 18

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

View Full Document Right Arrow Icon
Expenditure Approach Goods which are sold, are bought by someone else. Four Expenditure Categories: 1 Consumption spending (C): Goods and services that are ultimately bought and used by households (except for newly constructed buildings) 2 Gross private domestic investment (I): Goods and services (including newly constructed buildings) that become part of society²s business or residential capital stock; these goods and services are termed investment spending. Class 1
Image of page 19
Expenditure Approach Goods which are sold, are bought by someone else. Four Expenditure Categories: 1 Consumption spending (C): Goods and services that are ultimately bought and used by households (except for newly constructed buildings) 2 Gross private domestic investment (I): Goods and services (including newly constructed buildings) that become part of society²s business or residential capital stock; these goods and services are termed investment spending. 3 Government consumption (G) Class 1
Image of page 20

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

View Full Document Right Arrow Icon
Expenditure Approach Goods which are sold, are bought by someone else. Four Expenditure Categories: 1 Consumption spending (C): Goods and services that are ultimately bought and used by households (except for newly constructed buildings) 2 Gross private domestic investment (I): Goods and services (including newly constructed buildings) that become part of society²s business or residential capital stock; these goods and services are termed investment spending. 3 Government consumption (G) 4 Net exports (EX - IM): net spending by the rest of the world, or exports (EX) minus imports (IM) Class 1
Image of page 21
De±nition GDP is Y = C + I + G + ( EX ° EM ) Class 1
Image of page 22

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

View Full Document Right Arrow Icon
Component of GDP in the US -20,0 -10,0 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 1929 1932 1935 1938 1941 1944 1947 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 Personal consumption expenditures Gross private domestic investment
Image of page 23
Image of page 24
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern