ECON 311 Chapter Notes - Chapter 20: Northern Ireland Environment Agency, Capital Good, Fixed Investment
Document Summary
Production occurs in stages some outputs used as inputs to make other outputs. Added up all outputs of all firms = excess value of outputs. Intermediate goods outputs are used at inputs for other firms. Final goods not used at inputs (in the period of time) Separate sales of final goods and intermediate goods. Value added output minus value of inputs required. Correct measure of each firm"s contribution to total output (produced market value) Measure of national income and product done by national income and expenditure. Value of domestic output = value of expenditure on output = value of total income claims from producing output. Sum of expenditures needed to purchase final output produced: consumption, investment, government spending, net exports. Consumption expenditure all goods and services sold to final consumers in a year. Investment expenditure goods not for present consumption. Inventories stocks of inputs and own outputs to maintain steady stream of production.
