ECON 1BB3 Lecture Notes - Lecture 5: Canada Pension Plan, Government Spending, State-Owned Enterprise

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Using market value, taking into consideration that the airplane takes a lot more resources and time to produce (millions of dollars) while a potato is a few cents. Market transaction must take place to include these goods into gdp. Sending chid to daycare, care of those children is added to gdp. Neighbour stays home, watching her own children no market transaction care of the same children is not included in gdp. All legal goods and services: some goods and services with a market transaction (ex. Final only goods and services that reach final consumer. Produced in a country: american company producing cars in canada if they"re produced here, included in gdp, recorded every 3 months but numbers converted to be equivalent to a year. In a given period of time flow variable. Three ways to calculate gdp: output (basic prices, expenditure (market prices) Basic prices do not include sales tax, market prices do.