MGEA06H3 Lecture : Week2 Lecture

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cerisemammoth280

20 Apr 2011

School

UTSC

Department

Economics for Management Studies

Course

MGEA06H3

Professor

Iris Au

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MGEA06H3 Full Course Notes

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Outline: why we want to measure output, the 3 approaches to measure national income: The value-added approach: other issues related to national income: Gdp deflator. www. notesolution. com (cid:222) (cid:222) (cid:222) (cid:222) (cid:222) (cid:222) (cid:222) What are the levels of production: a simple way to measure our standard of living and compare it to other countries. Ecma06 national income: net exports (nx), nx = exports (x) imports (im) Gdp from the expenditure approach = c + i + g + nx. Gdp, expenditure base, at market prices, $ millions, 2009. The income approach: the income approach looks at all the incomes earned by. Canadians as a result of production: it takes into account of the followings: Factor incomes wages, salaries, interest, business profits. Non-factor payments indirect taxes and subsidies, capital consumption allowances (cca), inventory valuation adjustments (iva) www. notesolution. com (cid:222) (cid:222) Gdp, income base, at market prices, $ millions, 2009.

Related Questions

The following table shows macroeconomic data for a hypothetical country.

If you calculate GDP by adding together the final demands of consumers, business firm, the government, and foreigners using the expenditure approach, GDP for this economy is (1) $ _____ billion. Given this information, the statistical discrepancy between national income and net national product, obtain when GDP is measured using the expenditure approach is (2) $_____ billion.

magentaarmadillo809

In a given year, we find the value of final goods and services produced in the economy is $15t. Your professor told you that this is the expenditure approach to measuring GDP. He also told you we can measure GDP using the value of all the incomes generated from that production, but when you do, the dollar value of incomes is less than $15t. Please explain why this is so AND how this problem is corrected.

yellowwoodchuck103

Table 1.7.5. Relation of Gross Domestic Product, Gross National Product, Net National Product, National Income, and Personal Income
Line		2015		2016
Line		III	IV	I	II
1	Gross domestic product (GDP)	18141.9	18222.8	18281.6	18436.5
4	Gross national product	18332.5	18434.1	18454.2	18632.5
14	Net national product	15488.4	15571.4	15580.6	15732.4
16	National income	15724.4	15836.2	15844.9	15956.6
25	Personal income	15556.1	15690.2	15740.1	15900

Part 2: Income Approach to Calculating GDP

What is the difference between GDP and GNP? What is the difference in what the GDP measures compared to GNP?

Based on the table, what calculations must you make to determine GNP from GDP?

What is national income (NI)? What does NI measure?

Which was higher in this year, GNP or NI? By how much?

What calculations must you make to determine NI from GNP?

NI is composed of a number of categories. What category makes up the largest portion of NI?

cerisedeer330

MGEA06H3 Lecture : Week2 Lecture

MGEA06H3 Full Course Notes

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