ECON 2 Lecture Notes - Lecture 3: Counting Cars, Accounting, Gdp Deflator
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ECON 2 Full Course Notes
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What is gross domestic product (gdp), how is gdp related to a nation"s total income and spending, what are the components of gdp, how is gdp corrected for inlation, does gdp measure society"s well-being, gross domestic product. You can"t compare apples and oranges. if an apple costs twice as much as an orange, then it contributes twice as much to gdp. The study of the economy as a whole: macroeconomics, income and expenditure. Gross domestic product (gdp) measures total income of everyone in the economy. Gdp also measures total expenditure on the economy"s output of g&s: for the economy as a whole income equals expenditure because every dollar a buyer spends is a dollar of income for the seller, the circular-flow diagram. Illustrates gdp as spending, revenue, factor payments, and income. Keep an eye on gdp it shows up: firms. Buy/hire factors of production, use them to produce goods and services. The government: what the diagram omits, gdp is