ECO 1102 Chapter 5: ECO1102 Chapter 5: Chapter: Measuring a Nation's Income
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ECO 1102 Full Course Notes
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Total income of everyone in the economy. Total expenditure on the economy"s output of goods and services. For an economy as a whole, income must equal expenditure. There"s always a buyer and a seller cfd. Two ways to compute gdp for the cfd: (real economy is more complicated) Add up the total expenditure by households. Add up total income paid by firms. Households give their income to government in taxes, savings for future, some goods bought by government, some firms firms buy goods and save for future projects. Gdp is the market value of all final goods and services produced within a country within a. The measurement of gdp given period of time. Gdp adds together all kinds of products into a single measure of value of economic activity with the aid of market prices. Gdp includes all items produced in the economy and sold legally in markets comprehensive. Items produced and sold illicitly illegal drugs.