New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Econ 104 chapter 4 notes

by: Clark Gronek

Econ 104 chapter 4 notes Econ 104

Marketplace > George Mason University > Economics > Econ 104 > Econ 104 chapter 4 notes
Clark Gronek


Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Everything you need to know about chapter 4 in Gillespie's Macroeconomics class
Stephen Gillespie
Class Notes
25 ?




Popular in Macroeconomics

Popular in Economics

This 1 page Class Notes was uploaded by Clark Gronek on Friday September 9, 2016. The Class Notes belongs to Econ 104 at George Mason University taught by Stephen Gillespie in Fall 2016. Since its upload, it has received 2 views. For similar materials see Macroeconomics in Economics at George Mason University.


Reviews for Econ 104 chapter 4 notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/09/16
1. Reasons to know size of economy  Track growth over time  Help assess government policy  Alert decision makers when policy changes are needed  Enable economic comparisons to other nations 2. GDP is best way to measure economy 3. GNP – market value of goods produced by American companies anywhere in the world 4. Produced by Bureau of economic analysis 5. Part of National Income and product accounts 6. Developed by the National Bureau of Economic Research (1920) 7. Simon Kuznets, first national income estimate (1934) 8. Used and Intermediate goods aren’t counted in GDP 9. Two approaches of measuring GDP are compared: a. Expenditure – adds together spending on final goods and services i. GDP = Consumption +Investment + Government+(Export-Import) b. Income – adds together incomes earned through the production of final goods. i. GDP = Wages + Interest + Rent + Profit 10. Proposed alternatives to GDP include: a. The Index of Social Health, Vassar college, 1987 b. The United Nations Human Development Index, 1990 11. GDP deflator = (Nominal/Real) *100 12. Nominal GDP = current price x quantity 13. Real GDP= (nominal/GDP deflator) *100 14. CPI = (current nominal cost/previous nominal cost) *100 15. Components of Investment in GDP: a. Residential: single family homes b. Non-residential: offices, factories, hotels c. Non-residential equipment/software: machinery, vehicles, computer software d. Change in inventories: change in the volume and quantity of inventories 16. Government spending: a. National Defense b. State and local spending 17. Services are the largest part of consumption 18. other important factors of measure besides GDP: a. Net domestic product: GDP minus the fixed capital costs b. National Income: Total income earned by all factors of production i. NDP + Net Foreign factor income ii. NFFI = US resources purchased by foreigners – foreign resources purchased by Americans c. Personal Income: income that comes through the household sector i. Additional income through transfer payments and capital income d. Disposable income: income available to households for their use i. DI = Personal income – income taxes 19. Households are the largest sector of the economy 20. Labor Force = Employed + Unemployed 1. Population = Labor Force + Non-Labor Force 2. Labor Force Participation Rate = Labor Force/Population


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.