ECON101 Lecture : Chapter 5 Notes FULL lecture notes for Chapter 5
16 Oct 2011
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Is the market value of all final goods and services produced. It is strictly a measure of production. In a given period of time (such as a year) Domestic means within the borders of a country. Gdp is a flow variable (through time) ie not stock variable. Calculate gdp by multiplying p * q for each good and then adding your results together. Gdp = (15 * 1,000) + ( * 2,000) In the national accounts, firms and the government are the units which produce output in the domestic economy. Gdp includes only final goods not intermediate goods: (input into the production process) Va lue-added (production) approach: measures items included in gdp by measuring value added at each stage of production. Expenditure approach: calculates gdp by adding together spending by all the sectors (groups) in the economy. Income approach: measures gdp by adding together the incomes of the factors of production used to produce domestic product.
