ECON 222 Lecture Notes - Lecture 2: Black Market, Fixed Capital, Government Spending

• School: Queen's University
• Department: Economics
• Course: ECON 222
• Professor: Mike Kennedy

Document Summary

Measure economic activity during a period of time. *income approach: incomes received by the producer of output- wages, profits, taxes. Income approach= wages paged to employees +taxes payed to the government + after-tax profit. *the amount spend by the ultimate household(expenditure)=income generate by the economy. *gdp=the final goods and services newly produced in a country during a fixed period of time. Only includes final goods (not intimidate goods and capital good) Run down and enter the calculation of gdp as a minus sign. Value of final goods newly produced by domestic factors of production (capital, labour) Canadian owned capital and labour used aboard include in gnp, not gdp. Foreign owed capital and labour used in canada include in gdp, not gnp. Nfp (net factor payments from aboard) income paid to domestic factors of production by the rest of the world- income paid to foreign factors by the domestic economy.