ECON 1102 Chapter Notes - Chapter 7: Factor Cost, Unearned Income, Disposable And Discretionary Income
Document Summary
National income accounting: measures the economy"s overall performance. Statistics canada compiles national income and product accounts which asses the health of the economy, track the long-run course of the economy, and formulate policies. Gross domestic product (gdp): the main measure of the economy"s performance. The total (aggregate) market value of all nal goods and services produced within the borders of a country during a speci c period of time. To avoid multiple counting, only nal goods and services are counted. Final goods: goods and services purchased for nal use and not for resale or further processing or manufacturing. Intermediate goods: products purchased for resale or further processing or manufacturing. Gdp excludes non production transactions: financial transactions: public transfer payments, private transfer payments, stock- market transactions, second hand sales. Two ways of calculating gdp: expenditures and income: The expenditure approach: the sum of all the money spent in buying nal goods and services.