ECN 204 Lecture Notes - Lecture 2: Disposable And Discretionary Income, Income Approach, Unearned Income
2 Nov 2016
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Document Summary
National income accounting: measures economy"s overall performance. Statistics canada compiles national income and product accounts. Track the long-run course of the economy. Gross domestic product: the main measure of the economy"s performance. The total (aggregate) market value of all final goods and services produced within the borders of a country during a specific period of time: a monetary measure. Avoid multiple counting: to avoid multiple counting, only final goods and services are counted. Goods and services purchased for final use and not for resale or further processing or manufacturing. Products purchased for resale or further processing or manufacturing. Gdp excludes nonproduction transactions: two types of nonproduction transactions. Two ways of calculating gdp: the expenditure approach. The sum of all the money spent in buying final goods and services. By households, businesses, government, and buyers abroad. Adds up all the expenditures made for final goods and services. All final purchases of machinery, equipment, and tools by firms.
