ECN 204 Chapter Notes - Chapter 7: Investment Goods, Gross Fixed Capital Formation, Gross Domestic Product
Document Summary
National income accounting: measures the economy"s overall performance. Same as what private accountants do for firms, households. Statistics canada compiles the national income accounts for the canadian economy. Main measure of the economy"s performance is its annual output of goods/services aka aggregate output. Measured in several ways depending on how economy is defined. Gross domestic product: total market value of all final goods produced annually within. Gdp is a monetary measure, measures the value of output in monetary terms. Intermediate goods: products purchased for resale or further processing/manufacturing. (ex. Final goods: products purchased by their end user. (ex. Gasoline used for personal transportation, high-rise apartments, salads) Final goods included, intermediate goods excluded from gdp. Because, value of final goods includes the value of all intermediate goods used in producing them. If we include, it will be multiple counting and distort the value of gdp. Avoid multiple counting by measuring and culminating only the value added at each stage.
