Savings and investment provide data of performance of

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promoting rising living standards. Savings and investment provide data of performance of a financial system. More savings by households -> more banks lend the funds to businesses -> which invest in equipment, factories, and other capital goods. Describe why economists believe that ‘shocks’ and sticky prices are responsible for short run fluctuations in output and employment The future is uncertain Expectations affect investment
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Shocks What happens is not what you expected Demand shocks Supply shocks Chapter 24 Measuring Domestic Output and National Income Explain how gross domestic product (GDP) is defined and measured. GDP measures the value of all final goods and services produced in a country during a specific time, GDP is calculated for a specific period of time, usually a year or a quarter of a year. private consumption + gross investment + government investment + government spending + (exports – imports) Describe the relationship among GDP, net domestic product, national income, personal income, and disposable income. They all tie together to make our economy work I can explain the expenditure and income approach to GDP. Y = C + I + G which is a formulation of the expenditure approach. Thus, C includes the CONSUMPTION Expenditures by household units in the economy. ... The INCOME APPROACH calculates GDP on the basis of the sum total of all payments (income) received by various economic agents engaged in different production activities.
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  • Fall '16
  • Daggit
  • Economics, gross domestic product

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