Output and national income account chapter 7 GDP in money term is a flow. Final vs. Intermediate goods
Value added=Income
added=Paid out at each stage total incomes Output= GDP one year Gross Domestic product Products within ones country . Gross includes depreciation capital worn out current year. GDP is a flow over a specific amount of time GDP-amount of final products pg. 113 use for final good for the consumer.
*115 - all consumer goods are final goods all goods purchased by households some products purchased by firms are final goods ex-Machinery equipment tools are final goods
Are all durable mast more that one year. Firms do not purchased them for the further processing or resell them.
Products for further processing are called intermediate goods . Semi finished products. Bought for resale business or wholesale retail. GDP only include final goods. Exclude intermediate purchases firms GDP to Prevent double counting, Wages, Interest, Rents and Profits. Cost are income at every stage.