11:373:101 Lecture Notes - Lecture 14: Nanny

• School: Rutgers University
• Department: Environmental and Business Economics
• Course: 11:373:101
• Professor: P Gottlieb

Document Summary

Gdp can tell us something about achievement of these traditional goals. Gdp deals with final goods not intermediate goods (so not wheat / flour) Gdp: four key points (1) use prices to aggregate economic activities (2) avoid double counting of intermediate goods (3) gdp is a flow concept (4) every dollar of gdp is a dollar of income to someone. Everyone in supply chain using their labor to improve the process in long-term. Aggregate of incomes to each laborers = national income. Investment (data includes imports) (data includes imports) (data includes imports) net-exports. Gdp is within a nation need to subtract our imports. Gdp is a measure of human material welfare: basically how well off we are in terms of purchases. Limitations of gdp as an indicator of human well-being (1) population and gdp. Per capita is what matters (2) inflation. If prices of everything doubled, total measure of gdp would double.