Transcript Ch 22 Intro terms ppt

Measuring a Nation’s Income:
National Income Accounting
• GDP = single best measure ; but not perfect
• Annual Rate - take the Qtr. GDP x 4 to
compare with expected yearly rates
• Seasonally Adjusted
2 WAYS TO MEASURE
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Expenditures Approach
Y = C + I + G + Nx
Income Approach
Y = W + R + Int. + Profit
Circular Flow………..