ECON 102 Lecture Notes - Lecture 30: Gross National Income, Gross Value Added, Factor Cost
Document Summary
Gross domestic product (gdp) at both market prices and basic prices. Gross national income (gny) at both market and gross value added at basic prices. Note gross national income (gny) used to be and sometimes still is called gross. The circular flow shows the transactions among households, firms, governments and the rest of the world. Gdp or gross domestic product, is the market price of all final goods and services produced in a country in a given time period. This definition has four parts: market price, final goods and services, produced within a country, in a given time period. Excluding intermediate goods and services avoids a problem called double counting. Gdp measures production within a country domestic production. Gdp measures production during a specific time period. Excluding intermediate goods and services avoids double counting normally a year or a quarter of a year. Gdp is the market value of the final goods and services produced.
