ECON102 Lecture Notes - Gdp Deflator, Financial System

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sangriaweasel454

2 Apr 2013

School

University of Waterloo

Department

Economics

Course

ECON102

Professor

Maryann Vaughan

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Gdp: total income of the owners of the factors of production in an economy. Also measures the total expenditure on the economy"s goods and services. Top half: firms and households are bought together to exchange final goods and services. Bottom half: the rolse of the firms and the households are reversed in the factor markets. The market value of all final goods and services produced within a country in a given period of time. Market value: all goods measured in same unit at their market price. Final goods and services: intended for end user. Intermediate goods: used as components of other goods. Gdp only includes final goods - they include the value of the intermediate goods used in their production. Currently produced and not from the past. Annualized gdp: e. g per quarter 0. 8% Investment (i: consumption (c, government purchases (g, net exports (nx) Y = c + i + g + nx.

Related Questions

Which of the following statements about GDP is correct

A) Money continuously flows from households to firms and then back to households, and GDP measures this flow of money

B) GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services.

C) While not perfect, GDP is generally regarded as the best single measure of a society’s economic well-being.

D) All of the above are correct.

emeraldmarten620

The economy's income and expenditure The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs.

Based on this model, households earn income when ________ purchase _________ in markets for factors of production.

(i) firms; labor and capital

(ii) households; goods and services

viridianjackal166

An improvement in technology causes the production possibilities frontier (PPF) to

	shift to the right.
	pivot upward.
	shift to the left.
	pivot downward.

(7)

Which of the following is not shown by the circular flow model?

	The flow of resources in one direction and money in the other
	The equality of aggregate spending and aggregate income
	The interaction of households, firms, and the government
	The total amount of goods and services the economy can produce

(8)

Gross domestic product (GDP) is defined as

	the market value of all final goods and services produced in an economy in a given period of time.
	the market value of all consumption goods and services produced in an economy in a given period of time.
	the market value of all investment goods and services produced in an economy in a given period of time.
	the real value of all investment goods and services produced in an economy in a given period of time.

(9)

Real GDP

	includes all domestic and foreign transactions.
	includes the dollar value of domestic transactions only.
	tries to isolate the effect of changing output, holding prices constant.
	measures GDP in terms of prices of goods and services produced.

(10)

When economists talk about economic growth, they are usually referring to

	the percentage change in nominal GDP.
	the percentage change in real GDP.
	the percentage change in nominal investment.
	the percentage change in real investment.

chocolateant769

ECON102 Lecture Notes - Gdp Deflator, Financial System

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