ECO102H1 Lecture Notes - International Monetary Fund, Indirect Tax, Gdp Deflator
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ECO102H1 Full Course Notes
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January 2011 projections of real gdp (measure of output) Questions (u. s. : why the dramatic decline in 2009, why. The measure of output and of incomes earned to produce output. Implication: gdp can be measured either by adding expenditures or by adding incomes earned www. notesolution. com. John pays joan to mow laun, plus gst at %7. For two approaches to yield the same result, must add indirect taxes to factor incomes (income earned by joan). Nominal gdp: uses current prices to value economy"s production of goods and services. Real gdp: uses constant base-year prices to value the economy"s production of goods and services: nominal gdp can rise due to, higher output, higher prices, real gdp rises only if output increases. Refer to real vs. nominal gdp: example on handout (intro to macro)hotdogs hamburgers. Gdp deflator = nominal gdp/ real gdp *100. %^nominal gdp ~= [market value of output in current prices] %^real gdp (real output) + %^gdp deflator (prices) =~
