Topic 1
GDP measures the total output of goods and services produced in an economy in a given period of time
Y = C + I + G + (X – M)
GDP as Y, Consumption by households (C), Investment made by firms (I), Government Expenditure (G), Exports (X) minus Imports (M).
Y-T=C+S (T = Taxes, S= Household Savings
DEF=G-T
S=NFI +DEF+I
NX=NFI
Topic 2
The aggregate production function combines an economy’s physical capital stock, labor hours, human capital, knowledge, natural resources, and social…
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