ECN 204 Chapter 5: ECN 204 Chapter 5 Notes.docx
Document Summary
National income accounting are the techniques used to measure the overall production of the economy and other related variables for the nation as a whole: this helps: Track the long-run course of the economy (growing, constant, or decline) Formulate policies that will maintain and improve the economy"s health. Gross domestic product: the total market value of all final goods and services produced annually within the boundaries of canada. A monetary measure: this is what the gdp does, without this we would have no way of comparing the relative values of the vast number. It is a monetary measure of a nation"s output of goods and services produced in different years. Value added: the value of the product sold by a firm, less the value of the products purchased and use by the firm to product the product (table 5-2) Gdp excludes nonproduction transactions: financial transactions: Public transfer payments: social insurance payments (ex: welfare and unemployment insurance).
