ECN 101 Lecture Notes - Lecture 1: Exogeny, Equation
Document Summary
Chapter 2: measuring the macroeconomy: gross domestic product (gdp, market value of the final goods and services newly produced in an economy over a certain period. Market value : need a way to compare goods and services of unequal value, gdp = (pbikes x qbikes) + (pcars x qcars) Final goods and services : do not count goods and services used in the production process. Over a period of time : only goods and services produced in the current period. Ignore sales of used goods like used cars: gdp is a flow of income, not a stock, stock accumulate over time while flow measure change over time, stocks versus flows, saving is a flow, wealth is a stock. Investment is flow, capital is stock: budget deficit is flow, public debt is stock, national income accounts, production = income = expenditure.
