ECO 1102 Lecture Notes - Lecture 6: The Wealth Of Nations, Income Approach

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Gordon Lenjosek

Document Summary

National income relates to national spending and the number of physical things being produced. We cannot measure this, which is why gdp is created to measure how output changes as time passes. That money is not the government spending but redistributing to those who did not spend it: net exports (we"re buying their stuff, shows up as consumption, subtract it out of imports and it balances). Y = c + i + g + nx = production. Spending by households on goods and services that can include durable goods. Durable goods are counted separately in accounting. Non-durables are items that are consumed immediately. Can include intangible items such as healthcare. Housing: if you are renting, this is part of your consumption, while for those who own a house, it includes the pretend rental value if it were up for rent, how much could you get)