ECON 1013 Lecture Notes - Lecture 1: Income Approach, Xm Satellite Radio
Document Summary
Gross domestic product (gdp) is total and gross measure of goods and services an economy produces within a period, normally a year or a quarter- year. It measures two things at once: the total income earned by everyone in the economy and the total expenditure on the economy"s output of goods and services. Income is earned when we turn our factors of production into goods and services. National income is the sum of all income earned by domestically located factors of production. In other words, gdp measures the amount of production that takes place in an economy. For the economy as a whole, income must equal expenditure because every dollar of expenditure by a buyer is a dollar of income for the seller. Gross domestic product is the market value of all final goods and services produced within a country in a given period of time: market value. Goods and services are valued at their market prices.
