BSB113 Study Guide - Final Guide: Net Income, Government Spending, Income Distribution
Document Summary
(gdp), income & economic growth: promote economic growth, measuring this growth through gdp, gdp = $ value of all final good and services produced by a country within its. Gni = all goods / services + net income received from other countries. Gdp per capita: gdp divided by population (china"s large population = low per capita) What is not included in gdp: intermediate goods eg. cotton for shirts, non production transactions (financial transactions) eg. stocks, bonds, real estate, used goods. Measuring gdp: expenditure approach = total of spending on goods and services. Gdp = c + i + g + (nx) (consumers + investment (business)+ government spending + (net exports) Income approach = add up all national income. Income = r + w + ir + pr (rent +. Does not take into account inflation: real. Gdp per capita: adjusting gsp increases, taking into account that when population increases, as does the amount of products bought = inaccurate representation.
