ECON 209 Lecture Notes - Lecture 6: Delator, Black Market, Root Mean Square
Document Summary
Gnp= gross domestic product: income by canadian residents. Gdp = net domestic income: produced in canada some income produced in canada guess to non-residents, while some canadians residents earn income from abroad. To look at standard of living, must measure gnp per capita on average. Disposable personal income: = gnp - anything not actually paid to the household like taxes + the transfer payments received by households. Gdp that is valued at constant based-period prices is the real national income. This is calculated by doing, gdp de ator = nominal gpd (divided by) real gdp x 100. This is more comprehensive than cpi because it includes prices of all goods and services produced in the country. The cpi includes p of some imported consumption goods excluded in gdp de ator. Cpi and gdp move together but don"t necessarily have to because ones tracks consumer pries and the other tracks prices of goods produced in canada, therefore there are differences.