ECN 301 Chapter Notes - Chapter 2: Income Approach, Intermediate Good, National Wealth
3 Oct 2017
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Final goods and services: goods and services produced during a period of time may be classified as either intermediate goods and services or final goods and services. Intermediate goods and services are those used up in the production of other goods and services in the same period that they themselves were produced. Final goods and services are those goods and services that are not intermediate. Final goods and services are the end products of a process. Inventories are stocks of unsold finished goods, goods in process, and raw materials held by firms. Inventory investment is the amount by which inventories increase during the year: gnp vs. gdp, the difference between gnp and gdp concerns the treatment of output produced by capital and labour working outside its home (domestic) country. Similarly, when foreign capital or labour is used in canada, the output produced and the income earned are part of canadian gdp (because the production occurs within.
