ECON 2 Lecture Notes - Lecture 1: Marginal Product, Ceteris Paribus, Net Domestic Product
Document Summary
Syllabus/exams: every word in mcq questions imp. , final good not equal to intermediate goods, word final is important here. Bhutan rejected gdp for being too materialistic, saying happiness index is much more important. Columbia 120% underground economy: bowden: book- killing pablo; movies-blackout dam, zero hour. 1-3% normal/ favorable inflation, over that inflation considered high. Total market value of all final goods produced within the borders in a given year (place, time) Gdp is an estimate, expressed in dollars as we have to include market in the differential, as market value common ground for all goods in market. Intermediate goods always excluded from gdp, to avoid double counting. Some goods might be intermediate to you and final for someone else. Gnp > gdp, by not much but higher. Total output = total spending = total income. Y (gdp) = consumption (c) + investment (i) + government purchases(g) + net exports (nx) I (15%, most volatile, negative no. , business spending)
