It is wrong to say that real GDP is the value of all final goods based on the prices existing during the time period of production. This is because real GDP is the value of the current period's production measured at the constant prices of a selected base year.
It is wrong to say that unemployment benefits props up national income in years when employment is low. Low employment means high unemployment, or low demand in labour (I don't even know whether this line is necessary). When there is a low employment rate, unemployment benefits increase, which is an "income" to the unemployed. It is, however, not the national income as it doesn't produce goods and services. It is an income only when the receivers spend the money and generate output.
D:
I'm gonna do
crappy_love's meme tomorrow, hehe.
It is wrong to say that unemployment benefits props up national income in years when employment is low. Low employment means high unemployment, or low demand in labour (I don't even know whether this line is necessary). When there is a low employment rate, unemployment benefits increase, which is an "income" to the unemployed. It is, however, not the national income as it doesn't produce goods and services. It is an income only when the receivers spend the money and generate output.
D:
I'm gonna do
Leave a comment

