ECO102H1 Lecture Notes - Lecture 15: Imputed Rent, Net Domestic Product, Intermediate Good
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ECO102H1 Full Course Notes
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Document Summary
Gross domestic product (gdp) is the value of all final goods and services produced in. Gdp is a flow of new products during a period of time, usually one year. We can use three different approaches to measure gdp: Production approach - we can measure gdp by measuring the value added in the production of goods and services in the different industries (e. g. , agriculture, mining, manufacturing, commerce, ect. ) Expenditure approach - we can measure gdp by measuring the total expenditure on final goods and services by different groups (households, business, government, and foreigners) Income approach - we can measure gdp by measuring the total income earned by the different participants in the process of producing goods and services (wages, rents, profits, ect. ) Current output - gdp includes only the value of output currently produced. For instance, gdp includes the value of currently produced cars and houses but not the sales of used cars and old houses.
