ADMS 2200 Lecture Notes - Lecture 14: Monetary Policy, World Economy, Growth Accounting

• School: York University
• Department: Administrative Studies
• Course: ADMS 2200
• Professor: Alexander Rusetski

Document Summary

The market value of all final goods/services produced in a country in a given time period. Gdp measures the value of production, which also equals total expenditure on final goods/ total income. Equality of income & value of production shows the link between productivity & living standards. They buy the services of labour, capital, and land in factor markets. For these factor services, firms pay income to households wages for labour, interest for use of capital, rent for use of land (y) Governments buy goods/services from firms - govt. expenditure (g) Gdp can be measured by the total expenditure on goods/services or by the total income earned by producing goods/services. ** total expenditure (aggregate expenditure) = consumption expenditure + government expenditure + net exports. ** aggregate income earned producing goods/services = total amount paid for the factors used (ex. wages, interest, rent, profit) Gdp = c + i + g + x m.