NATS 1745 Lecture Notes - Lecture 20: Output Gap, Human Capital, Real Wages

• School: York University
• Department: Natural Science
• Course: NATS 1745
• Professor: Robin Metcalfe

Document Summary

Gdp defined: is the market value of all final made goods and services produced in a country in each time. Gdp is measured normally every year or a quarter of a year. Firms pay households to work (factor market) Households buy consumer goods from firms (goods market) Consumption expenditure is the total payment for consumer goods and services. Government buy goods and services from firms and their expenditure on goods and services is called government expenditure. Firms in canada sell to the world (exports) and buy from the world (imports). Total expenditure on final goods and services equals gdp. (cid:862)gross(cid:863) (cid:373)ea(cid:374)s before deducting the depreciation of capital. Opposite of that is (cid:862)net(cid:863) a(cid:374)d that (cid:373)ea(cid:374)s after dedu(cid:272)ti(cid:374)g the depre(cid:272)atio(cid:374) of (cid:272)apital. Measures gdp as the sum of the red flow: (consumption, expenditure, investment, government expenditure on goods and services, and net exports. ) Measures gdp by summing the incomes that firms pay households for working: (1.