Aggregating the Production of Vastly Disparate Goods Whose Units of Measurement

question 42

Essay

Aggregating the production of vastly disparate goods whose units of measurement vary widely is a problem. How do macroeconomists attempt to reconcile this difficulty?

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Definitions:

National Saving

The total amount of savings generated within a country, representing the difference between national income and consumption plus government spending.

Budget Resolution

A congressional agreement about total outlays, spending by major category, and expected revenues; it guides spending and revenue decisions by the many congressional committees and subcommittees.

Congressional Agreement

A consensus reached among members of the United States Congress on a legislative matter.

Outlays

Expenses incurred or amount spent for a particular purpose.