ECON 2020U Chapter 5: Principles of Macro [Mankiw, Kneebone, McKenzie] - Chapter 5 Notes
Document Summary
To judge a person"s quality of life, one might generally look at that person. Generally, a high income individual can afford life"s luxuries and thus lives a more fulfilling life. This same logic applies to nations; the greater the gdp of a nation (the mor e active valuable production), the higher the quality of life in that country. For an economy as a whole, income must equal expenditure. Since every transaction in an economy has a purchaser and a seller, any measurement of a transaction at any point in the transaction must be equivalent from the point of view of the seller or the purchaser. Gross domestic product - the market value of all final goods and services pr oduced within a country in a given period of time. Gdp compares all goods produced in an economy at the price which they are so ld.
