[ECON 105] - Midterm Exam Guide - Everything you need to know! (28 pages long)

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: David Cox

Document Summary

National accounts: keep track of spending of consumers, sales producers, business investment spending, government purchases, and variety of other ows of money between different sectors of the economy, more reliable the accounts, more economically advanced the country is. Ow of money into households (wages, pro ts, interest payment, rent, government transfers) Value-added approach: add the total value of all nal goods and services produced domestically: expenditure approach: add the spending on all domestically produced goods and. Income approach: add the income earned by labour and capital from the domestic production of goods and services. Gdp can be measured by ow of funds into rms: don"t double-count products by counting only value of sales to nal buyers (e. g customers, Rms that purchase investment goods, the government, foreign buyers: omit inputs form one business to another when estimating gdp using spending data aggregate expenditure on domestically produced nal goods and services in the economy.