ECON 209 Lecture Notes - Lecture 1: Disposable And Discretionary Income, Gdp Deflator, Black Market
20 Feb 2016
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A meausre of national output closely related to gdp is gross national. Product: gdp is total income produced in canada, gnp is income received by canadian residents. Some income produced in canada goes to non residents while some. Gnp = gdp + net foreign factor payments. Gdp is superior as a measure of domestic economic activity. Gnp is superior as a measure of living standards of residents (or, more accurately, gnp per capita) A more reined measure is disposable personal income: it equals gnp, minus any part not actually paid to households, ex: personal income taxes, el premiums, plus transfer payments received by households. Gdp that is valued at constant base-period prices is real national income. More comprehensive that cpi because it includes ps of all g & s produced in the country. Broadly, the 2 price indexes move together, due to underlying inlationary forces.
