ECON 1BB3 Chapter 6: Fundamentals of MacroEconomics Reading Notes

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

Document Summary

Bombardier plant in usa: o(cid:374)e perso(cid:374)"s spe(cid:374)di(cid:374)g is a(cid:374)other perso(cid:374)"s i(cid:374)(cid:272)o(cid:373)e, expenditure approach adds up spending on all final goods and services produced during the year. Kfc chicken that you buy: kfc buying its (cid:272)hi(cid:272)ke(cid:374) is (cid:374)ot gdp (cid:271)e(cid:272)ause the(cid:455) do(cid:374)"t (cid:272)o(cid:374)su(cid:373)e after selling it to us, it becomes gdp. Intermediate goods and services are products that require further processing. A painter buys canvas + paints creates painting worth . Investments: consists of spending on new capital goods and on net additions to inventories, stats can includes investment spending. = gdp: consists of spending on current production that is not used for current consumption. Government purchases: spending for goods and services. Clearing snow, buying library books, paying librarians: excludes transfer payments such as canada pension plan benefits, welfare benefits and ei, net exports value of canadian exports value of canadian imports. Aggregate income sum of all the income earned by resource suppliers in the economy.