曼昆经济学原理宏观经济学分册英文原版.pptx

2007 Thomson South-Western 2007 Thomson South-WesternMeasuring a Nations IncomeMicroeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets.Macroeconomics is the study of the economy as a whole.Its goal is to explain the economic changes that affect many households,firms,and markets at once.2007 Thomson South-WesternMeasuring a Nations IncomeMacroeconomics answers questions like the following:Why is average income high in some countries and low in others?Why do prices rise rapidly in some time periods while they are more stable in others?Why do production and employment expand in some years and contract in others?2007 Thomson South-WesternTHE ECONOMYS INCOME AND EXPENDITUREWhen judging whether the economy is doing well or poorly,it is natural to look at the total income that everyone in the economy is earning.2007 Thomson South-WesternTHE ECONOMYS INCOME AND EXPENDITUREFor an economy as a whole,income must equal expenditure because:Every transaction has a buyer and a seller.Every dollar of spending by some buyer is a dollar of income for some seller.2007 Thomson South-WesternFigure 1 The Circular-Flow DiagramSpendingGoods andservicesboughtRevenueGoodsand servicessoldLabor,land,and capitalIncome=Flow of inputs and outputs=Flow of dollarsFactors ofproductionWages,rent,and profit FIRMSProduce and sellgoods and servicesHire and use factorsof production Buy and consumegoods and servicesOwn and sell factorsof productionHOUSEHOLDS Households sellFirms buyMARKETSFORFACTORS OF PRODUCTION Firms sellHouseholds buyMARKETSFORGOODS AND SERVICES 2007 Thomson South-WesternTHE MEASUREMENT OF GROSS DOMESTIC PRODUCTGross domestic product(GDP)is a measure of the income and expenditures of an economy.GDP is the total market value of all final goods and services produced within a country in a given period of time.2007 Thomson South-WesternTHE MEASUREMENT OF GROSS DOMESTIC PRODUCTThe equality of income and expenditure can be illustrated with the circular-flow diagram.2007 Thomson South-WesternTHE MEASUREMENT OF GROSS DOMESTIC PRODUCT“GDP is the Market Value.”Output is valued at market prices.“.Of All.”Includes all items produced in the economy and legally sold in markets“.Final.”It records only the value of final goods,not intermediate goods(the value is counted only once).“.Goods and Services.”It includes both tangible goods(food,clothing,cars)and intangible services(haircuts,housecleaning,doctor visits).2007 Thomson South-WesternTHE MEASUREMENT OF GROSS DOMESTIC PRODUCT“.Produced.”It includes goods and services currently produced,not transactions involving goods produced in the past.“.Within a Country.”It measures the value of production within the geographic confines of a country.“.In a Given Period of Time.”It measures the value of production that takes place within a specific interval of time,usually a year or a quarter(three months).2007 Thomson South-WesternTHE COMPONENTS OF GDP GDP includes all items produced in the economy and sold legally in markets.What Is Not Counted in GDP?GDP excludes most items that are produced and consumed at home and that never enter the marketplace.It excludes items produced and sold illicitly,such as illegal drugs.2007 Thomson South-WesternTHE COMPONENTS OF GDPGDP(Y)is the sum of the following:Consumption(C)Investment(I)Government Purchases(G)Net Exports(NX)Y=C+I+G+NX 2007 Thomson South-WesternTHE COMPONENTS OF GDPConsumption(C):The spending by households on goods and services,with the exception of purchases of new housing.Investment(I):The spending on capital equipment,inventories,and structures,including new housing.2007 Thomson South-WesternTHE COMPONENTS OF GDPGovernment Purchases(G):The spending on goods and services by local,state,and federal governments.Does not include transfer payments because they are not made in exchange for currently produced goods or services.Net Exports(NX):Exports minus imports.2007 Thomson South-WesternTable 1 GDP and Its Components 2007 Thomson South-WesternGDP and Its Components(2004)Consumption 70%Government Purchases15%Net Exports-5%Investment16%2007 Thomson South-WesternREAL VERSUS NOMINAL GDPNominal GDP values the production of goods and services at current prices.Real GDP values the production of goods and services at constant prices.2007 Thomson South-WesternREAL VERSUS NOMINAL GDPAn accurate view of the economy requires adjusting nominal to real GDP by using the GDP deflator.2007 Thomson South-WesternTable 2 Real and Nominal GDP 2007 Thomson South-WesternTable 2 Real and Nominal GDP 2007 Thomson South-WesternTable 2 Real and Nominal GDP 2007 Thomson South-WesternThe GDP DeflatorThe GDP deflator is a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100.It tells us what portion of the rise in nominal GDP that is attributable to a rise in prices rather than a rise in the quantities produced.2007 Thomson South-WesternThe GDP DeflatorThe GDP deflator is calculated as follows:2007 Thomson South-WesternThe GDP DeflatorNominal GDP is converted to real GDP as follows:2007 Thomson South-WesternTable 2 Real and Nominal GDP 2007 Thomson South-WesternFigure 2 Real GDP in the United StatesBillions of2000 Dollars$10,0009,0008,0007,0006,0005,0004,0003,000197019751980198519902000199520052,000 2007 Thomson South-WesternIS GDP A GOOD MEASURE OF ECONOMIC WELL-BEING?GDP is the best single measure of the economic well-being of a society.GDP per person tells us the income and expenditure of the average person in the economy.Higher GDP per person indicates a higher standard of living.GDP is not a perfect measure of the happiness or quality of life,however.2007 Thomson South-WesternGDP AND ECONOMIC WELL-BEINGSome things that contribute to well-being are not included in GDP.The value of leisure.The value of a clean environment.The value of almost all activity that takes place outside of markets,such as the value of the time parents spend with their children and the value of volunteer work.2007 Thomson South-WesternTable 3 GDP and the Quality of Life Summary 2007 Thomson South-WesternBecause every transaction has a buyer and a seller,the total expenditure in the economy must equal the total income in the economy.Gross domestic product(GDP)measures an economys total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.Summary 2007 Thomson South-WesternGDP is the market value of all final goods and services produced within a country in a given period of time.GDP is divided among four components of expenditure:consumption,investment,government purchases,and net exports.Summary 2007 Thomson South-WesternNominal GDP uses current prices to value the economys production.Real GDP uses constant base-year prices to value the economys production of goods and services.The GDP deflatorcalculated from the ratio of nominal to real GDPmeasures the level of prices in the economy.Summary 2007 Thomson South-WesternGDP is a good measure of economic well-being because people prefer higher to lower incomes.It is not a perfect measure of well-being because some things,such as leisure time and a clean environment,are not measured by GDP.Summary 2007 Thomson South-WesternDollar figures from different points in time do not represent a valid comparison of purchasing power.Various laws and private contracts use price indexes to correct for the effects of inflation.The real interest rate equals the nominal interest rate minus the rate of inflation.