CHEMENG 2G03 Study Guide - Final Guide: Capital Outflow, Opportunity Cost, Mexican Peso

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Document Summary

Gdp (gross domestic product) total income of everyone in the economy; the market value of all final goods & services produced within a country in a given period of time. Adding up the total expenditure by households and firms. Rental housing; this value is easy to calculate; the rent equals both tenant"s expenditures and the landlord"s income. (if self owned estimate owner pays rent to himself) Inventory investment is added to gdp; and when used for goods production or sold then it is removed from gdp accordingly. Items are included in a nation"s gdp if they are produced domestically regardless of who buys it. Products produced and consumed at home; ex vegetables from your garden etc. When one person sells a used car to another person, the value of the car is excluded. Unemployment the percentage of the labor force that is out of work. The trade deficit the imbalance of trade between canada and the rest of the world.