Lec-2 - Chapter 23 - Nation's Income
Lec-2 - Chapter 23 - Nation's Income
Lec-2 - Chapter 23 - Nation's Income
Pa Qa Pi Qi Ps Qs
10 10 12 10 08 10
Factors of production
Consumers Producers
Goods and Services
Consumers Producers
Financial Sector
Circular Flow of Income
Three Sector Model
Consumers, Producers, Financial and Government Sectors
Income (Y)
Consumers Producers
Consumption spending (C)
Consumers Producers
Consumption spending (C)
National Income
Personal Income
Consumption (C )
Investment (I )
Government Purchases (G )
Y = C + I + G + NX
The Components of GDP
Consumption (C):
The spending by households on goods and
services, with the exception of purchases of
new housing.
Investment (I):
The spending on capital equipment,
inventories, and structures, including
new housing.
The Components of GDP
Nominal GDP
GDP deflator = 100
Real GDP
Converting Nominal GDP to Real
GDP