Management and Organizational Studies 2275A/B Lecture Notes - Lecture 5: Business Cycle, Deflation, Government Spending

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Chris Torrence

Document Summary

The study of the economy as a whole. The total value of all final goods and services produced in a country in a year. Gdp can be calculate in 2 ways: expenditure approach. Calculated by adding the total money spent on all final goods and services in one year. Total money spent on durable goods and services. Goods that last long (car), semi durable goods (clothing), non durable goods (goods that are used up very quickly) and services. This is made up of all goods and services purchased by all levels. Refer to the purchase of new capital goods for use in the production process, construction of new building and changes in business inventories. Calculated by adding the total income earned by different factors of production in producing the final goods and services. (wages, rent, interest, profit) Gpd is calculated base on the market price at that time.