14.02 Lecture Notes - Lecture 1: Fanta, Jato, Fot
Document Summary
Aggregate is the word macroeconomist use for total. At the end of world war ii the national income and products accounts were put together. Measures of aggregate output have been published on a regular basis in the us since 1947. The measure of aggregate output in the national income accounts is called the gross domestic product (gdp) Gdp is the value of the nal goods and services produced in the economy during a given period. We want to count only the production of nal goods, not intermediate goods. Way to construct gdp: by recording and adding up the production of all nal goods. Gdp is the sum of value added in the economy during a given period. The value added by a rm is de ned as the value of its production minus the value of the intermediate goods used in production. Example: the value added by a company producing cars for is .
