ECON 332- Midterm Exam Guide - Comprehensive Notes for the exam ( 66 pages long!)
11 Oct 2017
School
Department
Course
Professor
Document Summary
Gnp (gross national product) the value of all final g&s produced by a nation"s factors of production in a given time period. In an open economy, gnp equals the sum of consumption, investment, gvt purchases and the current account. I expenditure by firms on buying buildings equipment etc. Ca expenditure by foreigners on domestic goods (exports ) minus the spending by locals on foreign goods (imports) Loss of income to capital owners due to wear and tear, depreciation is unbiased from gnp: unilateral transfers payments made to expatriate workers sent to their home countries, foreign aid, pension payments to expatriate workers. Gdp (gross domestic product) the final value of all g&s that are produced within a country in a given time period. Value of output produced within a country"s borders. Gnp (national income) = [c + i + g ] (national/domestic expenditure) + ca. Ca>0, exports > imports, national income > domestic expenditure [current account surplus]
