ECON 2000 Lecture Notes - Lecture 7: Structural Unemployment, Arbitrage, Capital Accumulation
Document Summary
Definition of y, c, g, i and nx; stock vs. flow. Investment: new pp&l, new housing, increase in inventory (unsold goods) Gnp gdp = factor payments from abroad minus factor payments to abroad. Gross national income = gdp net income of foreigners. Net national income = gross national income depreciation (capital consumption allowances) National income = gross national income indirect business taxes: net interest = interest paid by domestic businesses interest received + interest earned from foreigners. Imputed values: rent homeowners pay themselves and wages of public service workers. Personal income = national income corporate profits social insurance contributions net interest + dividends + gov"t transfers to individuals + personal interest income to get personal disposable income subtract personal tax payments. Nominal vs. real gdp: the gdp deflator is a weighted average of prices, gdp deflator = quantity price /real gdp = (quantity/real gdp) price.
