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
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Author: John Duffy
Email: jduffy@pitt.edu
Home Page: http://www.pitt.edu/~jduffy/econ110/
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