MGEA06H3 Lecture Notes - Lecture 2: Gross National Income, Gross National Product, Gdp Deflator

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEA06H3
• Professor: Iris Au

Document Summary

Outline: why we want to measure output, the 3 approaches to measure national income: The value-added approach: other issues related to national income: Gdp deflator. www. notesolution. com (cid:222) (cid:222) (cid:222) (cid:222) (cid:222) (cid:222) (cid:222) What are the levels of production: a simple way to measure our standard of living and compare it to other countries. Ecma06 national income: net exports (nx), nx = exports (x) imports (im) Because consumption, investment and government spending may include final goods and services produced outside the country (i. e. imported goods) Given gdp measures final goods and services produced within the country, we need to subtract imports. Gdp from the expenditure approach = c + i + g + nx. Gdp, expenditure base, at market prices, $ millions, 2009. The income approach: the income approach looks at all the incomes earned by. Canadians as a result of production: it takes into account of the followings: Factor incomes wages, salaries, interest, business profits.