Textbook Notes (368,588)
United States (206,084)
Economics (294)
ECON 305 (9)
Dr.Neri (9)

Econ 2.docx

2 Pages
Unlock Document

ECON 305

Econ 2  Gross Domestic Product: the total income earned domestically, including the income earned by foreign-owned factors of production.  Market value of all final goods and services produced within an economy.  total expenditure earned on domestically produced goods and services  total income of everyone in the economy  income = expenditure  When you buy something (expenditure) its income for someone else.  GDP = (price X quantity) + (price X quantity)  Currently produced (not used)  When add to inventory it raises GDP but not when they then sell the inventory  Only final goods  Imputed value: estimate of the value of a good that isn’t sold in the marketplace • Imputed rent if you buy a house • No underground  Nominal GDP: value of goods and services measured at current prices.  Real GDP: value of goods and service using a constant set of prices  Not influenced by changes in price.  Base year price X current year quantity  Real GDP = (nominal GDP) / (GDP deflator)  GDPdeflator: implicit price deflator for GDP.  Price of output relative to its price in the base year.  (nominal GDP / Real GDP)  Nominal GDP =(real GDP) X (GDP deflator)  Change base year value throughout the years to keep it up to date and accurate  Y = C + I + G + NX (national income accounts identity.  Consumption: goods and services bought by households (nondurable, durable and service)  Investment: goods bought for future use (business fixed, residential fixed, and inventory) [factories, houses, and inventory]  Government purchases: goods and services bought by federal, state, and local governments.
More Less

Related notes for ECON 305

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.