ECON 1BB3 Study Guide - Midterm Guide: Aggregate Supply, Equilibrium Point, Industrial Policy

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Econ 1bb3 midterm 2 key words/definitions chapter 6-10. Expenditure approach to gdp calculating gdp of all spending in nation during period of time. Income approach to gdp adding up all earnings from resources used to produce output during period of time in the nation. Intermediate goods and services stuff that is bought for the purpose of reprocessing and reselling: grocery store buying bananas to sell to consumer. Double counting counting intermediate as final, so goods/services are counted twice. Consumption household purchases of final goods/services: personal expenditure on consumer goods/services, note: buying residences (houses, apartments, condo) counts as investment rather than final goods. Investment spending on new capital goods or net additions to inventory (more product to sell: physical capital physical things that is used to generate more money. Can be buildings, machines: residential is also investment. Government purchases government spending on goods/services. Aggregate expenditure total spending on final goods/services in a nation in a year (c+i+g+(x-im))