Components of GDP | GDP: Measuring national income | Macroeconomics | Khan Academy

Thinking about how different types of expenditures would be accounted for in GDP

Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course

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[sandeshvantveen]

Well I've been studying a lot for the past months using your website and I'm on my way to an entrance exam and watching this video on the train. I wanna thank you for all your videos and the knowledge you share!

[arnaud]

"I don't know why, but the symbol is Y."

I see what you did there! 😜

[tarview]

So in 6 years, no one explained that Y means "yield"? Can I have a job at Khan Academy? lol

[Jaidavirocks]

sal u make it so easy to understand things man

[A-HLearning]

Sal Khan, you are the best. Thank you for all the great training videos!

[Anon]

I find thinking about "final" goods and services tricky. A country could import crude oil and refine it locally, then sell it as gasoline (and jet fuel, lubricants etc). Crude is not a final product, but gasoline (etc) is. Likewise, a country could import coal or gas to burn locally for electricity. The electricity is the final product for consumers, but it is an input for companies (who need it to make their final products).

[PlanetJenWu]

Must be using the Greek letter Γάμμα ‘Gamma’ (for GDP), Γ which is anglicised to Y.

[blast]

But what if there are some goods produced by firms that haven’t been sold in the economy? Do those goods get accounted in the GDP too?

[MetalMinded]

If one defines "investment", contrary to basic human logics, as "expenditures of firms", then why does one not call it "expenditure of firms"?

I mean, there must be a reason.

[nkosinathilinda]

+Sebastian G GDP calculations exclude second-hand sales to avoid double counting.

[sebadeepdvr]

Sorry one last question. If GM sells a car for 1000 dollars then the second hand shop sells it for 1500? would GDP count the 500 as a service so the total gdp would be 1500? Thanks ;)

[One]

Questions
Expenditure done by govt giving salary to its employees are considered two times by the equation.
Government gives money to employees that employees is using that money to invest and consume.
How's that?

[saurabhmishra]

Thanks, we understand this. I am thankful for this video.

[quocnguyeninh]

I think the consumer of household also include the investment of firm, because it is included in the final price. Therefore the GDP is double included the investment fee of firm. Can anyone explain for me?

[mautan]

How does GDP account for a Commodity or Stock trader selling and buying a stock several times in a day? Do all the transactions of the day add up to register as GDP produced on that day ?

[daviddalton]

A few mixups between income and exp approaches in comments below. @marc If gov pays the salary then it is considered "g". @userlous : it only counts as "c" because it is the consumer "expending". If GM invested in Property/Plant equip then it would be I. @menogoth no: high taxes and spends nothing would not is not necessarily equally prosperous, depends on other components...high taxes reduces "c" because it lowers disposable income, and if govn't doesn't spend...Then G is not impacted..

[MetalMinded]

But "sold" is not the same as "produced".
So shouldn't there by an element of change of stocks?

[haneowz]

@khanacademy plaese add these microeconomic playlists to your website, thank you

[flyinspagettimonstah]

thank you so much!! You are a life saver. All the best for you man!

[gur]

I dont know  why and the symbol is Y!. lol