Economics 2152A/B Lecture 2: 2152 Chapter 2 TB Notes

• School: Western University
• Department: Economics
• Course: Economics 2152A/B
• Professor: Ayoub Yousefi

Document Summary

2152 chapter 2: the measurement and structure of the canadian economy. 2. 1: national income accounting and the measurement of production, income & expenditure. The national income accounts are an accounting framework used in measuring current economic activity. All three approaches give identical measurements of the amount of current economic activity. The three approaches: the product approach measures economic activity by adding the market values of goods and services produced, excluding any goods and services used up in the intermediate stages of production. This app(cid:396)oa(cid:272)h (cid:373)akes use of the (cid:858)(cid:448)alue-added(cid:859) (cid:272)o(cid:374)(cid:272)ept. The value-added of any producer is the value of its output minus the value of the inputs it purchases from other producers. Be(cid:272)ause of the e(cid:395)ui(cid:448)ale(cid:374)(cid:272)e of the th(cid:396)ee app(cid:396)oa(cid:272)hes o(cid:448)e(cid:396) a(cid:374)(cid:455) spe(cid:272)ified pe(cid:396)iod of ti(cid:373)e . Total production = total income = total expenditure. The broadest measure of aggregate economic activity, as well as the best known and most often used it gross domestic product (gdp).