National Income Accounting, Measuring Inflation and Real GDP Growth

1/24-1/26/00


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Table of Contents

How do we measure GDP, Y, the value of all final goods and services produced by an economy in a year?

How is Aggregate Income, Y, spent?

What makes up Aggregate Expenditure? C + I + G + NX.

GDP = Aggregate Income = Aggregate Expenditure

The Income Approach to Measuring GDP:

GDP = Net domestic product at market prices + Depreciation

The Expenditure Approach to Measuring GDP:

Real vs. Nominal GDP

Computing Real GDP

The GDP Deflator

Consumer Price Index (CPI)

An Example CPI

Author: John Duffy

Email: jduffy@pitt.edu

Home Page: http://www.pitt.edu/~jduffy/econ110/