2/5 LECTURE Flashcards
output is highly dimensional so we must reduce it down to
a single number (GDP)
output is
the set of all final goods and services produced by a country over the course of a particular period
measure is
a standard unit used to express the size, amount or degree of something
GDP is the measure of and is
value of output and is the value of final goods and services produced within a countries borders over the course of a year
final goods/services are
goods and services produced for direct use by the buyer
example of final goods/service
pants
intermediate outputs are
goods and services used up in the process of producing other (final or intermediate) goods or services
example of intermediate inouts
zipper
What is gross national product (GNP)
value of final goods and services produced using capital and labor of a countrys residents
when is a variable said to be nominal
if it is measured in terms of money
when is a variable said to be real
measured in terms of physical units
when is a variable said to be aggregate
measures total/overall amount
variable is said to be per capita
if it is measured per person
what are the four types of GDP
-aggregate nominal
-aggregate real
-per capita nominal
-per capita real
what are the three ways nominal GDP can be measured
-expenditure approach
-income approach
-production/value-added approach
