ECON 201 Chapter : 9 11
15 Mar 2019
Department
Course
Professor
Document Summary
Final goods and services- final users" consumption is all that is counted for the. Then the mkt value of this economy"s production, or its gdp, is equal to? (4 apples x . 25) + (6 bananas x . 50) + (3 shoes x . 00)= : production method. Intermediate goods are used for producing the final goods. Capital goods are long-lived goods that are used to produce other goods: expenditure method. 4 buyers: households, firms, government, foreign sectors, consumption (c)- spending by households. Example: food, clothing, entertainment (y= c + i + g + nx) * consumer durables: cars, furniture (can use more than once) * residential investment: construction of new homes and apartments. * inventory investment: the addition of unsold goods to company inventories: investment (i)- spending by firms, government purchases (g)- spending by local and federal government. *exports (x)- are domestically produced final goods and services that are sold.
