🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeClass Notes1,200,000CA670,000

ECN 204 Lecture Notes - Pg. 99, Weighted Arithmetic Mean, Gdp Deflator

55 views3 pages
School
Ryerson University
Department
Economics
Course
ECN 204
Professor
Thomas Barbiero

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Service or product counts towards gdp for country it was built/provided in. All services and products must only be counted once. To avoid multiple counting gdp only takes into account final goods. Final goods are goods and services purchased for final use and not for resale or further processing/manufacturing. Intermediate goods are products that are purchased for resale or further processing/manufacturing. Including both types of goods would be multiple counting. Value of final goods includes intermediate goods. Value added is the value of the product sold by a firm less the value of the products purchased and used by the firm to produce the product. Certain monetary transactions don"t count towards gdp because they don"t involve final goods: financial transactions: Public transfer payments: social insurance, welfare, unemployment. Private transfer payments: monetary gifts, parents give cash to kid. Stock market transactions: buying and selling of stocks and bonds: second hand sales:

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

ECN 204 Chapter Notes - Chapter 7: Stock Market, Gdp Deflator, Market Basket
roj
ECN 204 Chapter Notes - Chapter 5: Net Domestic Product, Income Approach, Stock Market
carminedog937
ECN 204 Lecture 1: ECN 204 Chapter 7
amaranthgnu139

Related Questions

To avoid multiple counting in national income accounts, only:

a. Final goods and services should be counted.
b. Primary, intermediate, and final goods and services should be counted.
c. Both final and intermediate goods and services should be counted.
d. Intermediate goods and services should be counted.

Economists include only final goods and services when measuring GDP for a particular year because:
 
a. if intermediate goods were not counted, then multiple counting would occur.

b. if intermediate goods were not counted, then prices would be overstated.

c. if intermediate goods were counted, then multiple counting would occur.

d. if intermediate goods were counted, then prices would be overstated.

Gross domestic product calculations count only final goods and services because:

A) these are the only goods and services that are purchased in an economy.

B) counting all goods and services would lead to double-counting of many activities.

C) it is difficult to measure the prices of intermediate goods produced.

D) one cannot calculate the quantities of intermediate goods produced.