ECON 335 Lecture Notes - Marginal Product, Parenting, John Rawls

• School: McGill University
• Department: Economics (Arts)
• Course: ECON 335
• Professor: John C Kurien

Document Summary

Chapter 1: incomes and welfare of japanese today. Produced by the citizens of the country (whether or not resident within borders) Final goods and services used to avoid double counting. Gdp (depreciation expenses + indirect tax) = ni. Spending is either for consumption, investment or accumulation of foreign wealth. Ni = either consumption, investment purchasing of foreign assets. Government purchase of final goods = investment/consumption. Investment = public works eg. purchase of buildings, roads. National government is prevented by law from issuing bonds in excess of that needed to finance investment. Higher ni devoted to investment = sustain higher steady state levels of consumption. High saving rate + high investment rate = higher sustainable consumption level. Y(national income) = c(spending by household) + i(spending by businesses and household spending for housing) + g(government expenditure) + [x(exports) . Gdp = c + i + (x m)