Economics 2152A/B Chapter Notes - Chapter 2: Gross Domestic Product, Gross National Product, Inventory Investment
Document Summary
Gross domestic product (gdp): the dollar value of final output produced during a given period of time within the borders of canada. Published by statistics canada as port of the national income and expenditure accounts (niea). Three approach to measure gdp: give exactly the same measure of gdp. 1) product approach (value-added approach): the sum of value added to goods and services in production across all productive units in the economy. The total value added =the total value of all goods produced the total value of all intermediate goods. 2) expenditure approach: total spending on all final goods and services production in the economy. The total expenditure = c+ i + g +nx = gdp. 3) income approach: add up all incomes received by economic agents contributing to production. The total income: y = c+ i + g +nx =gdp. Income-expenditure identity: aggregate income is equal to the sum of the components of aggregate exp.