ECO 212 Lecture Notes - Lecture 3: Gdp Deflator, Nominal Interest Rate, Real Interest Rate
Document Summary
If the price of an apple is twice the price of an orange, then an apple contributes twice as much to gdp as does an orange: of all . Includes all items produced in an economy and sold legally in markets: also includes the market value of the housing services provided by the economy"s stock of housing. For rental housing, the rent equals both the tenants expenditure and the landlords income. But many people own the houses they live in. Government includes this owner-occupied housing in gdp by estimating its rental value. Because value of intermediate good already included in final good: exception when an intermediate good is produced and rather than being used, is added to the firms inventory of goods. When canadian citizen temporarily works in us, her production is part of us gdp: in a given period of time , gdp measures the value of production that takes place within a specific interval of time.