ECN 204 Chapter Notes - Chapter 5: Net Domestic Product, Income Approach, Stock Market
Document Summary
The total market value of all final goods and services produced annually within the boundaries of canada. assess the health of the economy by comparing levels of productions at regular intervals. Track the long-run course of the economy to see whether it has grown, been constant, or declined. Formulate policies that will maintain and improve the economy"s health. To avoid multiple counting, only final goods and services are counted. Final goods: goods and services purchased for final use and not for resale or further processing or manufacturing. Intermediate goods: products purchased for resale or further processing or manufacturing. The value of final goods includes the value of all intermediate goods used in producing them. Two types of non-production transactions: financial transactions. public transfer payments ex: welfare, employment insurance. stock market transactions ex: swapping bits of paper on the stock market: second-hand sales. Two ways of calculating gdp: expenditure and income approach: