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A definition of the terms National Output, Income, Product, Expenditure and Aggregate Demand, and the relationships between them. Examples are given to illustrate the definitions.
A definition of the terms National Output, Income, Product, Expenditure and Aggregate Demand, and the relationships between them. Examples are given to illustrate the definitions.
| Module code and title: | D282, National income and economic policy |
|---|---|
| Item code: | D282; 01 |
| First transmission date: | 06-02-1972 |
| Published: | 1972 |
| Rights Statement: | |
| Restrictions on use: | |
| Duration: | 00:23:37 |
| + Show more... | |
| Producer: | Peter Ramsden |
| Contributor: | F S. Brooman |
| Publisher: | BBC Open University |
| Keyword(s): | Economic policy; Macro economics; National expenditure |
| Footage description: | Professor Brooman outlines the programme. Brooman defines what is meant by the national output and how the single indicator of the magnitude of a national output is arrived at. An example illustrated with animated sequences is used to simplify the definition. Brooman explains how the output of services (e.g. teaching, the army etc.) is calculated in money value terms. Brooman now refines the simple definition of national output by introducing the concept of the National Product. Hypothetical and actual examples are shown to illustrate the points. The actual example is the National Product of 1970; this Brooman analyses. Brooman now goes on to consider the concept of National Income; once again the explanation is illustrated with diagrammatically expressed examples. Brooman describes how National Income was divided up in 1970. He goes on to consider the implications of the observation that national product always equals national income. Brooman gives, with examples, the economist's definition of spending, and arrives at the concept of National Expenditure, which is necessarily equal to the value of the National Product. National expenditure is closely defined. Examples shown diagrammatically are used to illustrate the points. Brooman new examines the different kinds of spending that are covered by the definition of expenditure as spending on currently-produced final goods and services. Figures for Britain in 1970 are used to illustrate the points. Brooman sums up what he has already said, redefining National Product, National Income and National Expenditure. He then goes on to consider the implications of the relationship between National Product and National Income. He answers the question Why is there a need to spend less when inflation threatens, or more when the economy is depressed, when National Expenditure and National Product are logically identical in total? In answering this question Brooman introduces the concept of Aggregate Demand; this is defined. Brooman closes the programme by outlining the topics that will be dealt with in the following programmes. Credits. |
| Master spool number: | 6HT/70477 |
| Production number: | 00521_2266 |
| Videofinder number: | 135 |
| Available to public: | no |
