ECN 204 Chapter Notes - Chapter 7: Retained Earnings, Unemployment Benefits, Income Approach
2 Mar 2018
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Ecn 204 chapter 7 measuri(cid:374)g eco(cid:374)o(cid:373)y"s output. 7. 1 measuri(cid:374)g the eco(cid:374)o(cid:373)y"s perfor(cid:373)a(cid:374)ce: gdp: national income accounting, measures the e(cid:272)o(cid:374)o(cid:373)(cid:455)"s o(cid:448)erall perfor(cid:373)a(cid:374)(cid:272)e. It does for economy as whole what private accounting does for individual firm or household: statistics canada compiles national income accounts for canadian economy. A monetary measure: measures value of output in monetary terms. Gdp excludes nonproduction transactions: 2 types, purely financial transactions, public transfer payments social insurance payments such as welfare, employment insurance that government makes directly to households. They do not directly contribute to current production and are not included in gdp. Gross investment (lg: gross investment includes, all final purchases of machinery, equipment, and tools by firms, all construction, changes in inventories. Increased inventories considered as investment, unconsumed goods: residential construction treated as investment, capital = unconsumed goods, positive and negative changes in inventories. Wages, salaries, and supplementary labour income: largest category.
