EC140 Lecture Notes - Lecture 3: Environmental Quality, Gdp Deflator, Counting Measure
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EC140 Full Course Notes
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Growth in real income over time where do these measurements come from. Farmer grows wheat, turns into flower, becomes bread. Stages are how outputs become inputs for another company. Income generated by producing that output: production, expenditure and income are all equal by definition. Measuring expenditures: we look at adding these 4 variables, consumption expenditure, expenditures by households on goods and services, goods and services sold to final users. Investment expenditure: stuff that was produced and not intended for current consumption, goods not for current consumption. Expenditure side: consumption, can be broken into durable, semi-durable and non-durable based on how long they last. Investment: changes in inventory, government, about a quarter of the economy, net exports, very small in canada (about 1% of the economy) Factor incomes: wages, costs, non-factor payments, depreciation. Statistical discrepancy: make sure the two equal each other, and subtracting the difference.