ECON 261 Chapter Notes - Chapter 10: Final Good, Intermediate Good, Seasonal Adjustment
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Usually, that interval is a year or a quarter (three months): when the government reports the gdp for a quarter, it usually represents gdp. The unadjusted data show clearly that the economy produces more goods and services during some times of the year than during others: therefore, government statisticians adjust the quarterly data to take out the seasonal cycle. The components of gdp: to understand how the economy is using its scarce resources, economists study the composition of gdp among various types of spending. Recall gdp is total spending: to do this, gdp (denoted as y) is divided into 4 components: consumption (c), investment (i), government purchases (g), and net exports (nx) Investment= the total spending on goods that will be used in the future to produce more goods: includes spending on, capital equipment (machines, tools) Inventories (goods produced but not yet sold: structures (factories, office buildings, houses) U. s. national income accounts treat the transaction: net exports fall, while.
