Summary ECON122 Notes (Chapter 13,21 and 22 )

Chapter 13 (video


First way to Calculate GDP




factors
(sell-buy) Incomeroo Profit = Value added
Wages interest rent prot an




soa
t




↓ Income method add up everything
t = R17000




·
Production Method (total amount of all value added
= R17000




· Expenditure Method (last amount in
your production cycle



Second way to calculate GDP




j
measur
it
GDP = C + 1 + G + X -
2

Both omics
GDE = C + 1 + G


NI =


N 3 measure t
MP (market prices
Caneithed 2vt Only diff
* . in terms of taxation and subsidies

FP (factor prices ( XS


2oxt
VS




depriciation

G *
Bu
N
(gross) + depriciation
(net)




FE + Fl


Pestic
.
Bu
* N
com + FE Fl (national)



+ X Z

P
enditure
m

X + z (production (



t + S

↑P *
Bu
FC
+ t S
(Market prices (
-




(factor cost)