EC140 Chapter Notes - Chapter 20: Fixed Investment, Intermediate Good, National Accounts
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EC140 Full Course Notes
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Production occurs in stages: some firms produce outputs that are used as inputs by other firms, and these other firms, in turn, produce outputs that are used as inputs by other firms. Fi(cid:396)(cid:373)"s (cid:448)alue added is the net value of its output. U(cid:373) of all values added i(cid:374) e(cid:272)o(cid:374)o(cid:373)y is (cid:373)easure of e(cid:272)o(cid:374)o(cid:373)y"s total output. Gdp: market value final goods and services, produced within a country in a given time period. *do(cid:374)"t (cid:272)ha(cid:374)ge (cid:271)asi(cid:272) relatio(cid:374)ship; when all income claims are correctly added equal total value of production. Gdp from expenditure side: adding up expenditures needed to purchase final output produced in that year. Investment: gov. purchases, net exports, consumption expenditure (ca): services: e. g. haircuts, dental care etc. Actual consumption expenditure: all expenditure on all goods and services sold to their final users during the year. Non durable goods: e. g. fresh veggies, clothes, flowers, fresh meat etc. Durable goods: e. g. (cid:272)a(cid:396)s, tv"s: investment expenditure (ia):
