Income and Expenditures
1. Micro vs. Macro
2. Total income (Y) = total expenditures (GDP)
3. Gross domestic product - the market value of all final goods and services
produced within a country in a given time period.
- Market values
- Black markets
- Housing
- Household production
- Intermediate goods
- Inventory investment
- Goods and services
- Secondary markets
- Geographical borders
- Quarters, annual, seasonal adjustment
4. Other measures of income
- Gross national product
- Net national product = GNP - depreciation
- National income = Net national income minus indirect business taxes
- Personal income = Household and noncorporate business income
- Disposable personal income = personal income minus taxes
5. Y = C + I + G + NX
- Consumption
- Investment
- Government purchases
- Net exports
6. Real vs nominal GDP
7. GDP and economic well-being
- Omits the value of leisure, environment, household production
- Ignores income distribution