EC250 Lecture Notes - Lecture 2: Gross Domestic Product, Net Domestic Product
Document Summary
Introduction: national income and expenditure accounts, csnea - system of accounting rules that provides the definitions, concepts and classifications of. In canada: canadian system of national economic accounts (csnea) Flows are variables measured per unit of time (gdp is a flow) Stocks are variables measured at a moment in time (national wealth is a stock: the reason for mistake - the imprecise language. Monetary value of production: monetary value of production, calculating the monetary value of output, calculating value added, two goods: cannot use the same approach, calculate the value of production (multiply quantity by prices -> calculate percentage change) Imputed value = the cost of providing the service: problems: cannot account for, productivity and quality changes, quality of services. Imputed value - rent in a similar place, as if rented by owner to herself: different treatment of housing from other durable goods. Calculating value added: to avoid double counting.
