ECON 1010 Lecture Notes - Lecture 1: Income Approach, Gross Profit, Xm Satellite Radio
Document Summary
Econ1010 lecture 1 chapter 20: measure gdp and economic growth. Define gdp and explain why gdp equals aggregate expenditure and aggregate income. Explain how statistics canada measures gdp and real gdp. Describe how real gdp is used and explain its limitations as a measure of economic well-being. Gross domestic product is the market value of all final goods and services produced in a country in a given time period. Gdp and the circular flow of expenditure and income. Gdp measures the 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. The circular flow diagram shows the transactions among households, firms, governments, and the rest of the world: households and firms. Households sell and firms buy the services of labour, capital, and land in factor markets.