ECON 102 Lecture Notes - Lecture 3: Inventory Investment, Fixed Capital, Operating Surplus
Document Summary
Nominal gdp = sum value of production of all industries. Main input = value data from production surveys + input output accounts. Nominal gdp = sum of value added of all industries. Measure nominal gdp (adding up value of production of all industries) Main input = don"t need to add up all the production (would take forever), surveys in different industries and use input matrix tables and aggregate the data for the whole economy, nb gdp measured quarterly. Problem of double counting is real (eg. steel production for cars, just consider sales from cars) > eg. car value added = revenue - (glass + steel + all the other things it takes to make a car) Value of houses is special - you can get market value of cars but for houses it"s different (because trading is not common\ Total production = c + i + g + (x-m)
