EC140 Chapter Notes - Chapter 20: Gross Domestic Product, Gross National Product, Fixed Investment

• School: WLU
• Department: Economics
• Course: EC140
• Professor: All

Document Summary

Producion occurs in stages so we can"t merely add up the market values of all outputs. We must obtain naional output through the summing of value of all inal goods. Intermediate goods: all outputs that are used as inputs by other producers in a further stage of producion. Final goods: goods that are not used as inputs by other irms but are produced to be sold. There are three measures that yield gdp: adding up the value of all goods and services produced in the economy, adding up the total low of expenditure on inal domesic output. Gdp on the expenditure side: adding up the total low of income generated by the low of domesic producion. Gross domesic product (gdp): the total value of goods and services produced in the economy during a given period. Total expenditure on inal output is the sum of four broad categories of expenditure: consumpion, investment, government purchases, and net exports.