EC202 1nd Edition Lecture 7Outline of Last Lecture I. International flowII. Macroeconomic monetary policyIII. Fiscal policyIV. Structural policyV. Positive vs normative analysisVI. Microeconomics vs macroeconomicsOutline of Current Lecture II. Gross Domestic Product (GDP)Current Lecture-GDP: the market value of the final goods and services produced in a country during a given period of time-using market values of different goods and services allows economists to aggregate the quantities of many different goods and services (ie comparing apples to oranges)-market value: a convenient way of adding together many different goods-final good or service: a good or service that is produced for its final user and not as a component of another good or service-end products of the production process-counted in final GDP-intermediate good or service: a good or service that is produced by one firm, bought by another firm, and used as a component of a final good or service-used up in the production of final goods or services-counted indirectly in GDP since their value is already included in the final product value-capital good: long lived good which is itself produced and used to produce other goods and servicesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-example: machinery, plant and equipment, business inventory change-currently, production of final goods is called investment as is counted as a final
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