ECON 203 Study Guide - Final Guide: Tax Rate, Gdp Deflator, Output Gap
1 Sep 2016
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Gdp (gross domestic product): includes all final goods and services produced within a country. Ex: what toyata produces in ontario, counts towards canada"s gdp, not japan"s. Expenditure approach: ae = c + i + g + nx. I (gross investment) = net investment + cca (depreciation) Nominal gdp: use current prices x current output. Real gdp: use base-year prices x current output. Nom gdp growth = gdp deflator growth + real growth. Gdp + income of canadians earned abroad income paid to canadian immigrants. Expand potential output to improve standard of living (cpi) Unemployed / lf x 100% = unemployment rate. Potential output (long-run aggregate supply) yp is a vertical line and independent of prices. Can be increased by increased labor force or technology. If ad increases (shifts right), p , real gdp (y) . If sras , p , real gdp . Shift ad or sras to close gap.
