ECON 2002.01 Lecture Notes - Lecture 7: Gross Domestic Product, Longrun, Retained Earnings

• School: Ohio State University
• Department: Economics
• Course: ECON 2002.01
• Professor: Darcy A Hartman

Document Summary

Total market value of all final newly produced goods & services produced within an economy"s borders by firms & individuals during a certain period of time. Income approach ture si trend"s. mmon m y. C = consumption: biggest category, what households are buying/all spending (except new homes(would be an investment)), durable (longer lasting goods), nondurable (immediate use goods), services. I = investment: business spending, new homes G = government spending: purchases of g/s not as much as households, does not include transfer payments (receiving unemployment, social security, or bailouts, these are more consumption) Nx = net exports: exports (x) - imports (m) [x-m] Gdp = c + i + g +nx = y (income) Gdp =c + i +g + (x - m) T + s + m = g + i + x. Ni = gdp - depreciation (replacing worn out goods)- indirect business taxes.