Four different measures of GDP, Macroeconomics

Assignment Help:

Four different measures of GDP

Using circular flow model we see that there are 4 equivalent ways of measuring GDP:

Using the definition: market value of all finished goods (expenditure method)
As the sum of all value added from all firms (value added method)
As sum of consumption (government andprivate), investment and net exports (components method)
As the sum of all returns from factor markets: return on capital, wages and so on (income method)

Related Discussions:- Four different measures of GDP

Classical economic theory, Between 2007 and 2009 the U.S. economy experienc...

Between 2007 and 2009 the U.S. economy experienced a severe recession. In an effort to stimulate the economy, the federal government passed a stimulus package. Explain the federal

Explain about economic growth rate, Explain about Economys growth rate ...

Explain about Economys growth rate Economy's growth rate: Long-term economic growth, or tendency growth, is the rate of growth the economy can sustain, ignoring the short-term

Porter''s model affect, How do the five competitive forces in Porter's mode...

How do the five competitive forces in Porter's model affect the profitability of the overall industry? For example, in what way might weak forces increase industry profits, and in

Survivor Island, the central economic problem facing the group of survivors...

the central economic problem facing the group of survivors

Explain between perfect competition and monopoly market, "No point is bette...

"No point is better accepted than the fact that the monopoly price is higher and the output smaller than what is socially ideal. The public is the victim." (a) Explain between

Hmo to provide acute care impatient services, A hospital has contracted wit...

A hospital has contracted with and HMO to provide acute care impatient services for $1000 per day, subject to a 10% withhold. The proposed budget for inpatient services is based up

Theory of aggregate demand, unplandned change in inventory are coutned as i...

unplandned change in inventory are coutned as investment spending by firms

Mankiw, Using the Mundell-Fleming model, describe how an increase in a coun...

Using the Mundell-Fleming model, describe how an increase in a country’s risk premium on the world interest rate can result in a higher level of real income. Under what circumstanc

Intertemporal choices , ) Consider an economy where individuals live for 2 ...

) Consider an economy where individuals live for 2 periods and have prefer- ences represented by ln(c) + ß ln(c') where c and c' represent consumption in the first and second perio

Balance of payment, what cause balance of payment curve to shift

what cause balance of payment curve to shift

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages