DQ #1. An Economy's Output Is Also Term Paper

DQ #1. An economy's output is also its income because its output is calculated as the measurement of all the goods and services produced by the economy, and also being channeled back into the economy in the form of purchases in other economic sectors, savings, and investments. Expenditures measured in the form of GDP tally the production of goods and services on U.S. soil while GNP measures the production of goods and services produced anywhere by the U.S. residents. Both can generate income for U.S. companies and consumers that can be funneled back into the economy in exchange for other durable and nondurable goods, and services, as well as reinvested into other sectors.However, imported goods are subtracted out of the calculation of a national income, because the funds generated by the foreign production companies will be funneled back to the base, foreign nation. U.S. consumers may buy foreign goods, but the goods do not generate income for the nation as a whole.

DQ#2 National income accountants compare the market value of the total outputs over….....