ECON 1000 Chapter Notes - Chapter 5: Gross Domestic Product, Gdp Deflator, Intermediate Good
Document Summary
Macroeconomics the study of economy wide issues such as inflation, savings, unemployment and economic growth. Gross domestic product (gdp: measures two things at once: Total income of everyone in the economy. Total expenditure on the economy"s output of goods and services: for the economy as a whole income = expenditure. Illustrates gdp as spending, revenue, factor payments, and income. Factors of production: inputs like labour, land, capital, and natural resources. Factor payments: payments to the factors of production (e. g. wages, rent : the cfd omits: The government: collects taxes and purchases of goods and services. The financial system: matches savers supply of funds with borrowers demand for loans. The foreign sector: trades goods and services, financial assets, and currencies with the country"s residents given period of time. In a given period of time. goods. Goods are valued at their market price. Things without a market value are excluded (e. g. housework, mowing your lawn, etc.