ECO-4 Lecture Notes - Lecture 25: Bundesautobahn 45, Aggregate Demand, Potential Output
Document Summary
Gdp = sum of the money values of all final goods and services produced during a specified period of time, usually one year. More specifically, this is gdp at market prices. Government outputs= valued at the cost of the inputs needed to produce them. Inventories are treated as though they were bought by the firms that produced them, even though these purchases do not really take place. Investment goods = final products demanded by the firms that buy them. Gdp as the sum of all factor payments. Gdp as the sum values added: - gdp = sum of values added to goods in all firms. Additional measures of the income of a nation: gdp vs gnp. Gross national product is the sum of the money values of all final goods and services produced by the factors of production owned by the nationals of a country, during a specific period of time, usually a year.
