ECON 104 Lecture : Econ 104 Lecture Notes.doc
Document Summary
August 31, 2012: economists use gross domestic product (gdp) to. The word value is important in the definition of gdp. In measuring gdp, we include only the value of final goods and services. A intermediate good is a good or service that is an input into another good or service: example the tires ford purchases to put on their trucks. Components of gdp: personal consumption expenditures, or consumption . Investment spending by firms on new factories, office buildings, machinery, and additions to inventories, plus spending by households and firms on new houses: government consumption and gross investment, or. Government purchases are spending by federal, state, and local governments on goods and services, such as teachers" salaries, highways, and aircraft carriers: net exports of goods and services, or net exports . Net exports are equal to exports minus imports: export goods are goods and services produced in the united states and purchased by foreign firms, households, and governments.
