Lecture 8 Flashcards
What is GDP?
The total value of all goods and services produced in a country in a given year
What is GVA?
This is gross value added and it is the sum of all the values added by all the industries in the economy over a given year
How do you calculate GDP?
Consumer expenditure + Government consumption + exports of goods and services + gross domestic fixed cap formation minus imports
How do u calculate GVA?
GDP - taxes plus subsidies
What is GNY?
- Gross national income is the GDP plus net income from abroad
How do u calculate GNY?
GDP + net income from abroad
What is NNY?
This measures subtracts capital depreciation as GNY ignores this
How do we calculate NNY?
GNY - depreciation
What is aggregate demand?
How much GDP is demanded
Why does the aggregate demand curve slop down?
- International substitution effect
- Real balance effect
What is aggregate supply?
The amount of goods and services firms are willing to supply at any level of price
why does the AS curve slope upwards?
- Higher prices mean producers are willing to supply more
