ECON-2000 Lecture Notes - Lecture 9: Stock Market, Fixed Capital, National Accounts
Document Summary
Gross domestic product (gdp): total output based on the dollar value of all final goods and services produced within a country"s borders during a specific time frame. Avoid multiple counting: market value final goods, ignore intermediate goods. Exclude financial transactions: public transfer payments, private transfer payments, stock market transactions. Income approach: count income derived from production, wages, rental income, interest income, profit. Expenditures approach this is the one you are responsible for. Personal consumption expenditures (c: durable goods 3+ years, nondurable goods, consumer expenditures for services (60%) Gross private domestic investment (ig: machinery, equipment, and tools, all construction includes houses, positive and negative changes in inventories, (new) r&d; creation of works in the arts. Government purchase (g: expenditures for goods and services, expenditures for publicly owned capital, excludes transfer payments. Net exports (xn) (smallest factor: add exported goods, subtract imported goods, xn = exports (x) imports (m) Gdp = c + ig + g + xn.
