宏观经济学第5章

1、ECONOMICS PRINCIPLES,APPLICATIONS,AND TOOLS,谢群（Mars) International Business Faculty Email: 813448342 Phone:188 1865 1852,Chapter 5 Measuring a Nations Production and Income,Learning objectives Explain the circular flow Identify the components of GDP Describe the steps from GDP to income Calculate re

2、al and nominal GDP List the phases of the business cycle Discuss the relationship of GDP to welfare,This chapter and next will introduce you to the concepts you need to understand what macroeconomics is all about. In this chapter ,well focus on a nations production and income. In the next chapter, w

3、ell look carefully at unemployment and inflation.,Two basic issues of macroeconomics,Long-run economic growth Economic fluctuations,5.1 the “flip” sides of macroeconomic Activity: production and income,This chapter is about the production and income of economy as a whole. The data of production and

4、income is important to Macroeconomists and Government officials,Common macroeconomic data,National economy（GDP, the three major demands contribution rate of GDP, the level of consumption, the industrial added value, total retail sales of social consumption, the main industrial products）, the price i

5、ndex, income, fixed asset investment, climate index Foreign trade, national financial,The circular flow of production and income,Wages, rents interest, and profits are all different forms of income. ,5.2 The Production Approach: Measuring an Nations Macroeconomic Activity Using Gross Domestic produc

6、t,Gross domestic product(GDP)-the total market value of final goods and services produced within an economy in a given year Total market value Final goods and servicesintermediate good In a given year(newly produced),Real GDP-A measure of GDP that controls for changes in prices Nominal GDP-the value

7、 of GDP in current dollars,Economic growth-sustained increases in the real GDP of an economy over a long period of time,The components of GDP,1 consumption expenditures: purchase by consumers 2 private investment expenditures: purchases by firms Government purchases: purchases by federal, state, and

8、 local governments Net exports: net purchases by the foreign sector(domestic exports minus domestic import),Consumption include durable goods, nondurable goods, services. It is the most important component of GDP, constituting about 71 percent of GDP Private investment expenditures consist of three

9、components:1 spending on new plants and equipment 2 newly produced housing 3 the increase in inventories during the current year Investment in the GDP accounts purchases of new final goods and services by firms,Government purchases include any goods plus the wages and benefits of all government work

10、ers, and investment spending by government. The transfer payments(payments for social security, welfare, and interest on government debt) arent included in them. Net exports Trade deficit Trade surplus,The GDP equation,Y=C+I+G+NX Y=GDP C=consumption I=investment G=government purchases NX=net exports

11、,5.3 the income approach: measuring a nations macroeconomic activity using national income,National income-the total income earned by a nations residents both domestically and abroad in the production of goods and services. GNP=GDP+ Net income earned abroad NNP=GNP-depreciation Personal income-recei

12、ved by households Personal disposable income=personal income-income taxes,Measuring National Income,National income is divided among six basic categories: Compensation of employees(wages and benefits) Corporate profits Rental income Proprietors income Net interest(interest payments received by house

13、holds from business and from abroad) Other items,Measuring National income through value added,Value added-the sum of all the income(wages, interest, profits, and rent)generated by an organization. Value added=the firms sales-the dollar value of the goods and services purchased from other firms.,An

14、expanded circular flow,Page 108th figure 5.4 The circular flow with government and the foreign sector,5.4 A closer examination of nominal and real GDP,How to use the GDP deflator,GDP deflator-An index that measures how the prices of goods and services included in GDP change over time. GDP deflator=N

15、ominal GDP/real GDP*100 Chain-weighted indexa method for calculating changes in prices that uses an average of base years from neighboring years,5.5 fluctuation in GDP,Recession-commonly defined as six consecutive months of declining real GDP Peak-the date at which a recession starts Trough-the data at which output stops falling in a r