Errata. Income Approach to Measuring GDP. 2. Value Added distributed as income to Employees, Owner/Creditors, & Gov’t Compensation of employees (Wages, Benefits) Net operating surplus (Profits, Net Interest, Rental Income) Taxes on Production. Payoff to strategy #2.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Value Added distributed as income to Employees, Owner/Creditors, & Gov’t
Compensation of employees (Wages, Benefits)
Net operating surplus (Profits, Net Interest, Rental Income)
Taxes on Production
Substitution Effects When US$ becomes expensive, domestic goods or assets get cheap and foreign investors are attracted to domestic currency.
Students should be able to:
Domestic Currency Depreciates
Cheaper to Borrow
Raise Asset Prices
Cut Money Market Rate
Cut Policy Rate
Net Exports Increases
Reduce Cost of ST
Consumer Purchases and Inventory Investment Increase
Average Fixed Costs decreases as production increases
AVC, ATC, MC all increase as diminishing returns kick in
MC equals AVC and ATC when each of the latter are at their minimum level.
Students should be able to