ECON 1010 Lecture Notes - Lecture 1: Gross Profit, Business Cycle, Potential Output
Document Summary
Chapter 4: monitoring the value of production (gdp) Gdp or gross domestic product is the market value of all final goods and services produced in a country in a given time period. Goods and services are valued at their market prices: final goods and services. Item bought by final user during a specific time period. Measures production domestic production: within a given time period. Normally a year or quarter of a year. Gdp measures value of production, which also equals total expenditure on final goods and total income. The equality of income and value of production shows the link between productivity and living standards. Households sell and firms buy the services of labour, capital, and land in factor markets. Factor markets are factors of production that are bought and sold. Firms sell and households buy consumer goods and services in the goods market. Consumption expenditure is the total payment for consumer goods and services.