ECON 200 Lecture Notes - Lecture 14: Black Market, Fixed Capital
Document Summary
Ls chapter 25: measuring domestic output and national income. Intermediate goods- goods and services used up in the production of final goods. Transfer payments- ss, welfare, veterans payments that gov makes directly to households. Components of gov gdp- expenditures for publicly owned capital, expenditures for goods and service that gov consumes in providing public services. Private domestic investment expenditures consist of: newly produced housing, any increase in inventories, spending on new plant and equipment. When gross investment is less than depreciation, net investment is negative. Gdp accounting, gov purchases include: the purchasing on new military equipment & spending on highway construction. Compensation of employees- payments by employers into social insurance for employees, wages and salaries, and payments by employers into private pension plans. Comprise national income- taxes on production & imports, corporate profits, interest, proprietors income, american salaries earned abroad, compensation of employees, rents. National income to obtain gdp- consumption of fixed capital, statistical discrepancy.
