ECON 1010 Lecture 1: Chapter 20 - Measuring GDP and Economic Growth
16 Jan 2017
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Lecture 1 - chapter 20 - measuring gdp and economic growth. Lecture 1 - chapter 20 - measuring gdp and. Define gdp and use the circular flow model to explain why gdp equals aggregate expenditure and aggregate income. Definition: gdp or gross domestic product is the market value of all final goods and services produced in a country in a given time period. Final goods and services (as opposed to intermediate goods) Gdp and the circular flow of expenditure and income. Gdp measures the value of production, which also equals total expenditure on final goods and total income. The equality of income and value of production shows the link between the level of production and living standards. When you add the the income and expenditure of everyone in a nation, it is total/national income/expenditure. Living standard is the amount that we can and will consume.
