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, Senatee Seaments
On
GREGATEE EmmeRTSO
RICE
e
GDP measure ofaggregate economic activity
② INVESTMENT
=
⑪ LIMPTION
tienen
areaorneed itGod
- -
① ② ·expenditurecurrentpericaB, s
the mainaD
o expenditure on consumer goods, services during
Y
*
Expenditure approach
the current period
productapproach during the currentp eriod
antaraa
components impose the
NENinvestment
· consumers butnot
by
overal
artimagein
·two types of
GDP is calculated as total spending
approach
remiFLEEnder,
added
o
o aka value
on all final goods, services production
GDP is calculated sum of
men
o as economy
in
Meena
value added to goods - services NX=totulaxoe e
twinpenastureto itatit
-
across all units ofeconomy total imports
B
o
d (net exports)
o To calculate GDP:
↳
EaPrtNacDehtekonningaggregate Exeepenaiure
③
RNMENT
value of a ll
goods, services
spending ④
DeeACHa
e
in
- ·n
goods, alln i e rmedi a te
valueof
outof pocket
o measures price changes in goods, services purchased
services
by urban consumers
goods a service is
·onlyexpendituresorfinal
E
obtain total value
③ D chance in goods overtime
en ArchatebruteninirakerPas ingarewasinteaasantrahotatmy
quality of
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economic agents contributing
·keh in
·GDP is calculated by adding up all income received by
thebuyerisreceivingmorein exchangeformancein
o
to production
the
biased upwards
income
is
profitsmadebyfirms,compensationofemployees,
income includes proprietor's
·
·rather than race ofincrease in cp1:more
CHAPTER TWO
accuratat
e auses
men
r ate ofinflation in consumer goods is the
Eee
of
implicitconsumption price deflator
MEASUREMEN
component G DP
of
- goods produced-goods sold in given year
OINVENTORY INVESTMENT
value ofoutput produced by domestic factors
r Taking
A
W
accountofnew goods
. GROSSNATIONAL PRODUCT (GND) <reinigenensidearrestintegers ofnew products to prevent
o need to take into account quality advance
bias inflation
downward bias ofr eal GDP growths upward
of
does nott ake in account leaves outn on market
undergranateeaninmostinment
how income distributed
S G ↳meeteALTH+
market price
SummerMinig
flows:rate per unitt ime (GDP, consumption, investment a net exports)
1 +CA
currentaccount:3
Been
o
aRenee
RES
=
o
I stocks:the
quantity in existence ofsome
object& a pointi ntime
6
3
private disposable income:YP Y NFD+ TR INT-T Itaxes therefore: wealth is accumulated through
+
+ ->
o
=
whatprivate sector
S I me
(n-earrentedinfrom emigrainmentgovernmentaent
↳ has available to spend
INT-interest on
to private sector
a
ment
↳account
*
higher unemploymentrate:
3
-> addition to nation's to current accountsurpluses
Greater
↳ dispersion in incomes ·private sector savings: whatprivate sector saves
capital stock imply residents are
↳mmme Simmer miner
across population -Savings MINUS consumption claims
accumulating
EMPLOYMENT RATE: e
ForceONRAE
UNEMPLOYMENT RATE:
↳ ofpoor
greater concentration on
foreigners
a
government savings/surplus:9" 5 TR-INT-G
-
in
people
employmenpulaire ofunemplode
ner a ccount
-o current surplus
* it
↳ quantity
unemploymentratemight deficit:D 59 T TR INT G Flow
government
= = -
+ +
=
a
- +
c laims on
of
useful for
the labor markettightness:
saving:5 SP +S y NFP-C-G 3 private saving national saving
foreigners
STOCK
=>
reason
+
↳
onational =
=
+
notaccount for how hard people
labor
determine level of ⑰
markettightness indirectm easure ofeconomic are searching for work
Welfare
↳labour markettightness falls ↳ gives into aboutdistribution ofi ncome
as
unemploymentrate ↳ income: c ow for unemployed
increases
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