ECO 304L Chapter 10: Chapter 10 Notes

• School: UT-Austin
• Department: Economics
• Course: ECO 304L
• Professor: M O S T A S H A R I, S H A L A H

Document Summary

Gross domestic product (gdp): the market value of all final goods and services produced within a country in a given period of time. Measures total income of everyone in the economy. Measures total expenditure on economy"s output of goods and services. Seasonal adjustment: adjusts data for when economy produces more goods and services during some times of the year than during others. Statistical discrepancy: the difference between the two ways of calculating gdp. Consumption (c): spending by households on goods and services, with the exception of purchases of new housing. Investment (i): spending on business capital, residential capital, and inventories. Transactions involving items produced in the past. Gross national product (gnp): total income earned by a nation"s permanent residents (nationals) Excludes income that foreigners earn in the us. Net national product (nnp): total income of a nation"s residents minus losses from depreciation. National income: total income earned by a nation"s residents in production of goods and services.