Econ 311 Intermediate Macroeconomics Professor Eschker. Fall 2014
|
|
- Norman Quinn
- 6 years ago
- Views:
Transcription
1 Econ 311 Intermediate Macroeconomics Professor Eschker Fall 2014
2 Today s Topics Finish math refresher GDP Deflator Chain Weighting
3 News CBO Projection: Budget Deficits in Future Years to be Smaller than Previous Forecast The Congressional Budget Office (CBO) released new budget projections today An Update to the Budget and Economic Outlook: 2014 to The projected budget deficits have been reduced for most of the next ten years, although the projected deficit for 2014 has been revised up slightly (by $14 billion). NOTE: In the previous update, the CBO revised down their projection of the deficit for fiscal 2014 from 3.7% to just under 2.9% of GDP. The federal budget deficit for fiscal year 2014 will amount to $506 billion, CBO estimates, roughly $170 billion lower than the shortfall recorded in At 2.9 percent of gross domestic product (GDP), this year's deficit will be much smaller than those of recent years (which reached almost 10 percent of GDP in 2009) and slightly below the average of federal deficits over the past 40 years. CBO's current economic projections differ in some respects from the ones issued in February The agency has significantly lowered its projection of growth in real GDP for 2014, reflecting surprising economic weakness in the first half of the year. However, the level of real GDP over most of the coming decade is projected to be only modestly lower than estimated in February. In addition, CBO now anticipates lower interest rates throughout the projection period and a lower unemployment rate for the next six years.
4
5 National income accounting Method of aggregating the production of diverse goods into a single measure of overall economic activity. Gross domestic product (GDP) The value of the final goods and services produced in an economy over a year. The most looked at statistic in regards to overall economic health of a country 2014 II GDP is $17,295 billion $54,640 per capita
6
7 3 Equivalent ways to measure GDP Production measure of GDP The value of goods produced in the economy. Expenditure measure The total purchases in the economy. Income measure All the income earned in the economy.
8 Expenditures The national income accounting identity states: Where Y = GDP (in dollars) C = consumption I = investment G = government purchases NX = net exports = exports imports
9 Housing in NIPA Just like any investment Long lived, so not intermediate good Depreciates New Residential is part of Investment But other consumer durables not included Flow of housing service is part of Consumption Includes imputed owner occupied rent Estimated from periodic surveys (imprecise) Income from sales of new housing/rent/owner occupied rent is Income Sale of used house is NOT in GDP (except realtor commission, inspection fees, etc.)
10
11
12 The income approach Income Measures the sum of all income earned in the economy. Capital Inputs into production other than labor that are not used up in the production process. Firms increase capital through investment.
13 Depreciation The deterioration of the capital stock due to wear and tear. GDP depreciation = net domestic product
14 When calculating income, we need to distinguish between profits and economic profits Profits Normal competitive return on inputs. Economic profits Above-normal returns associated with prices that exceed those that prevail under perfect competition. In perfect competition, economics profits are zero
15 Total shares of GDP to inputs: Share of GDP to Labor: two-thirds Share of GDP to Capital: one-third. Labor s share of GDP has remained approximately constant over time.
16 5 types of income by percent of all income Wages (71%) Corporate Profits (12%) Proprietor s Income (10%) Net Interest (5%) Rent (1%)
17 Value Added There is no double counting in GDP; only the final sale of goods and services count. Value added The amount each producer contributes to GDP. The revenue generated by each producer minus the value of intermediate products. Only new production of goods and services counts toward GDP.
18 Exercise: A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and sells it to a baker for $3.00. The baker uses the flour to make a loaf of bread and sells it to an engineer for $6.00. The engineer eats the bread. Compute & compare value added at each stage of production and GDP
19
20 Note: Final Sales are GDP minus changes in inventory
21 Size of Pie versus How Pie is Sliced
22 Economics Efficiency refers to how large is the pie Equity refers to how the pie is sliced
23 Two arithmetic tricks for working with percentage changes 1. For any variables X and Y, percentage change in (X Y ) percentage change in X + percentage change in Y EX: If your hourly wage rises 5% and you work 7% more hours, then your wage income rises approximately 12%.
24 2. percentage change in (X/Y ) percentage change in X percentage change in Y
25 Over Time Nominal GDP A measure of GDP at today s prices. current dollars Real GDP GDP adjusted for inflation If actual goods and services produced don t change, then no change in Real GDP benchmarked dollars or constant dollars
26 GDP Deflator (implicit price deflator) One price level is the GDP deflator, defined as GDPdeflator nominal GDP real GDP
27 The inflation rate is the percentage increase in the overall level of prices. The inflation rate over one year is the growth rate of the Price Index: inflation rate Price Index t 1 Price Index - Price Index t t where t is the year and t+1 the following year
28 The inflation rate is the percentage change in the price level. Or we could also use the following math trick: _
29 Nom. GDP Practice problem Real GDP GDP deflator Compute the GDP deflator in each year. Use GDP deflator to compute the inflation rate from 2006 to 2007, and from 2007 to Inflation rate 2006 $46,200 $46,200 n.a ,400 50, ,300 52,000
30 Answers to practice problem Nominal GDP Real GDP GDP deflator Inflation rate 2006 $46,200 $46, n.a ,400 50, % ,300 52, %
31 Calculating Real GDP 1. A Laspeyres index uses initial prices. 2. A Paasche index uses final year prices. Over long-time intervals the two indexes can result in substantial differences.
32 Laspeyres Index c = i initial p q i c i Paasche Index c = where i is the good p is the price q is the quantity c is the current year i final p q i c i
33 Practice problem P Q P Q DVDs $ $31 1,000 DVD players $ $ Compute nominal GDP in each year. Compute real GDP using Laspeyres and Paasche Indexes. Compute growth rate of real GDP using Laspeyres and Paasche Indexes.
34 Answers to practice problem nominal GDP multiply Ps & Qs from same year 2006: $46,200 = $ $ : $51,400 = $ $ Growth rate = (51, )/46200 =.1126 = 11.26% real GDP (Laspeyres) multiply each year s Qs by 2006 Ps 2006: $46,200 = $ $ : $50,000 = $ $ Growth rate = (50, )/46200 =.0823 = 8.23% real GDP (Paasche) multiply each year s Qs by 2007 Ps 2006: $47,484 = $ $ : $51,400 = $ $ Growth rate = (51,400-47,484)/47484 =.0825 = 8.25%
35 The Fisher index (chain weighting) is the preferred approach to calculating real GDP. Geometric Average of the Laspeyres and Paasche index. Geometric average X *Y NOTE: Book shows arithmetic average instead! Arithmetic average X Y 2
36 Preferred because new goods are invented while others become obsolete making early or recent prices inaccurate. Can be applied on a year-by-year basis if we compute real GDP each year.
37 Chain weighting allows us to compare changes in real GDP over time by gradually updating prices. We link the chain of comparisons.
38 Chain Weighted real GDP (Laspeyres) Growth rate = 8.23% real GDP (Paasche) Growth rate =8.25% Geometric Average growth rate = (8.23*8.25)^1/2 = 8.24% What is real chain weighted GDP in each year benchmarked to 2007? Real GDP 2007 = Nominal GDP 2007 = $51,400 (always!) Real GDP 2006: What would real GDP have to be in 2006 so that it grows 8.24% and becomes? 51,400? Real GDP 2006 * (1.0824) = 51,400 or GDP = $47,487
39 Main reason for using chain-weighted data: Prices of computers rapidly changing in 1990s. Main disadvantage: The sum of real C, I, G, NX will not equal real chain-weighted GDP because the prices used in constructing the components are different. General rule to follow: For particular components of GDP, we look at the ratio of nominal variables. When you want real rates of economic growth, use the chain-weighted real measures.
40 In Class Problem
Learning objectives. Gross Domestic Product
Learning objectives In this chapter, you will learn about: Gross Domestic Product (GDP) the Consumer Price Index (CPI) the Unemployment Rate The Data of Macroeconomics slide 1 Gross Domestic Product Two
More informationChapter 2: The Data of Macroeconomics
Chapter 2: The Data of Macroeconomics 0 IN THIS CHAPTER, YOU WILL LEARN: the meaning and measurement of the most important macroeconomic statistics:! gross domestic product (GDP)! the consumer price index
More informationThe Data of Macroeconomics
C H A P T E R 2 MACROECONOMICS SIXTH EDITION N. GREGORY MANKIW PowerPoint Slides by Ron Cronovich 2008 Worth Publishers, all rights reserved In this chapter, you will learn the meaning and measurement
More informationmacroeconomics The Data of Macroeconomics N. Gregory Mankiw CHAPTER TWO PowerPoint Slides by Ron Cronovich fifth edition
CHAPTER TWO The Data of Macroeconomics macroeconomics fifth edition N. Gregory Mankiw PowerPoint Slides by Ron Cronovich 2002 Worth Publishers, all rights reserved Learning objectives In this chapter,
More informationmacro macroeconomics The Data of Macroeconomics N. Gregory Mankiw CHAPTER TWO 6 th edition
macro CHAPTER TWO The Data of Macroeconomics macroeconomics 6 th edition N. Gregory Mankiw Learning objectives In this chapter, you will learn about: Gross Domestic Product (GDP) the Consumer Price Index
More informationCh 2. National Income Accounting ECO 402
Ch 2. National Income Accounting ECO 402 Key Words The circular flow Three approaches to measuring national income Production Income Expenditure Value added Final goods and intermediate goods Gross domestic
More informationMACROECONOMICS. The Data of Macroeconomics MANKIW. In this chapter, you will learn. Gross Domestic Product: Expenditure and Income.
C H A P T E R 2 The Data of Macroeconomics MACROECONOMICS N. GREGORY MANKIW 2008 Worth Publishers, all rights reserved SIXTH EDITION PowerPoint Slides by Ron Cronovich In this chapter, you will learn the
More informationChapter 1: The Data of Macroeconomics
Chapter 1: The Data of Macroeconomics Econ206 - Francesc Ortega August 31, 2011 Outline 1. The GDP 2. The inflation rate 3. The unemployment rate Reading: Mankiw 7e, chapter 2 Definition The Gross Domestic
More informationChapter 2: The Data of Macroeconomics*
Chapter 2: The Data of Macroeconomics 1/40 *Slides based on Ron Cronovich's slides, adjusted by Marcel Bluhm for lecture in Macroeconomics at the Wang Yanan Institute for Studies in Economics at Xiamen
More informationGlobal Macroeconomics Measurement
Global Macroeconomics Measurement Action items Complete problem set #0 Due September 15 Economic Outlook Forum Tonight! 5:00-6:30, Paulson Auditorium Economic and market outlook Economists from: Nomura,
More informationRecall from Econ 200:
Chapter 2: The Data of Macroeconomics Recall from Econ 200: Macroeconomics is the study of the economy a whole, including growth in incomes, changes in price, and the rate of unemployment. Macroeconomists
More informationECON 3010 Intermediate Macroeconomics. Chapter 2 The Data of Macroeconomics
ECON 3010 Intermediate Macroeconomics Chapter 2 The Data of Macroeconomics IN THIS CHAPTER, YOU WILL LEARN: the meaning and measurement of the most important macroeconomic statistics: gross domestic product
More informationNotes for Econ 4 Sect. 2, Fall 2005 Instructor:
Notes for Econ 4 Sect. 2, Fall 2005 Instructor: José-Víctor Ríos-Rull, University of Pennsylvania Chapter 2 NIPA Evolved from notes written by Jesús Fernández-Villaverde September 22, 2005 7 2 NIPA A Guide
More informationMacroeconomic Data. Two definitions: In this chapter, you will learn about how we define and measure: Gross Domestic Product
Topic 2: Macroeconomic Data (chapter 2) revised 9/15/09 CHAPTER 2 The Data of Macroeconomics slide 0 Learning objectives In this chapter, you will learn about how we define and measure: Gross Domestic
More information1. A large number of economic statistics are released regularly. These include the following:
CHAPTER The Data of Macroeconomics Questions for Review 1. GDP measures the total income earned from the production of the new final goods and services in the economy, and it measures the total expenditures
More informationECO 209Y MACROECONOMIC THEORY AND POLICY LECTURE 2: NATIONAL INCOME ACCOUNTING
ECO 209Y MACROECONOMIC THEORY AND POLICY LECTURE 2: NATIONAL INCOME ACCOUNTING Gustavo Indart Slide1 GROSS DOMESTIC PRODUCT Gross Domestic Product (GDP) is the value of all final goods and services produced
More informationUnemployment Rate = 1. A large number of economic statistics are released regularly. These include the following:
CHAPTER The Data of Macroeconomics Questions for Review 1. GDP measures the total income earned from the production of the new final goods and services in the economy, and it measures the total expenditures
More informationTopic 2: Macroeconomic Data. (chapter 2) revised 9/15/09. CHAPTER 2 The Data of Macroeconomics slide 0
Topic 2: Macroeconomic Data (chapter 2) revised 9/15/09 CHAPTER 2 The Data of Macroeconomics slide 0 Learning objectives In this chapter, you will learn about how we define and measure: Gross Domestic
More informationUnemployment Rate = 1. A large number of economic statistics are released regularly. These include the following:
CHAPTER The Data of Macroeconomics Questions for Review 1. GDP measures the total income earned from the production of the new final goods and services in the economy, and it measures the total expenditures
More informationFull file at
MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question 1) Gross domestic product is defined as 1) A) the total market value of the final goods and services
More informationEXPENDITURE APPROACH: The expenditures on all final goods and services made by all sectors of the economy are added to calculate GDP. Expenditures are
Chapter 1 MEASURING GDP AND PRICE LEVEL MEASURING EONOMIC ACTIVITY Macroeconomics studies the aggregate (or total) concept of economic activity. Its focus is on the aggregate output, the aggregate income,
More informationCH.3 Output and Prices: Evaluating Macroeconomic Performance Measuring National or Aggregate Output
CH.3 Output and Prices: Main focus: 1. Indicators of macroeconomic 2. Measuring output (GDP) 3. Measuring Prices and inflation Evaluating Macroeconomic Performance 1. Rising Living standards Economic growth
More information8 THE DATA OF MACROECONOMICS
8 THE DATA OF MACROECONOMICS Measuring a Nation s Income 23 Measuring a Nation s Income Microeconomics Microeconomics is the study of how individual households and firms make decisions and how they interact
More informationMeasurement. Chapter 2. Topics in Macroeconomics 2. Economics Division University of Southampton. February 8, 2008
Measurement Chapter 2 Topics in Macroeconomics 2 Economics Division University of Southampton February 8, 2008 Chapter 2 1/42 Topics in Macroeconomics Gross Domestic Product Introduction Gross Domestic
More informationGross Domestic Product. How Is The GDP Calculated? Net investment equals gross investment minus depreciation.
Chapter 23: Measuring GDP, Inflation and Economic Growth Gross Domestic Product applegross Domestic Product (GDP) is the value of aggregate or total production of goods and services in a country during
More information1. The economic statistic used to measure the level of prices is the: A) GDP. B) CPI. C) GNP. D) real GDP.
1. The economic statistic used to measure the level of prices is the: A) GDP. B) CPI. C) GNP. D) real GDP. 2. The statistic used by economists to measure the value of economic output is the: A) CPI. B)
More informationMeasurement. Chapter 2. Topics in Macroeconomics 2. Economics Division University of Southampton. February 2009
Measurement Chapter 2 Topics in Macroeconomics 2 Economics Division University of Southampton February 2009 Chapter 2 1/45 Topics in Macroeconomics Gross Domestic Product Introduction Gross Domestic Product
More informationMacroeconomic Theory and Policy
ECO 209Y Macroeconomic Theory and Policy Lecture 2: National Income Accounting Gustavo Indart Slide1 Gross Domestic Product Gross Domestic Product (GDP) is the value of all final goods and services produced
More informationWilliam A. McEachern Macro3 ECON
William A. McEachern Macro3 ECON 6 1 The Product of a Nation 17 th and 18 th century Mercantilism 1758 Economic prosperity: stock of precious metals Circular flow of output and income National income accounting
More informationfile:///c:/users/moha/desktop/mac8e/new folder (2)/CourseCompas... Creation Settings
1 of 24 12/8/2012 11:32 م COURSES > BA121 > CONTROL PANEL > POOL MANAGER > POOL CANVAS P Add, modify, and remove questions. Select a question type from the Add drop-down list and click Go to add questions.
More informationECON 1102: MACROECONOMICS 1 Chapter 1: Measuring Macroeconomic Performance, Output and Prices
ECON 1102: MACROECONOMICS 1 Chapter 1: Measuring Macroeconomic Performance, Output and Prices 1.1 Measuring Macroeconomic Performance 1. Rising Living Standards Economic growth is the tendency for output
More informationMacroeconomic Analysis Econ 6022 Level I
1 / 37 Macroeconomic Analysis Econ 6022 Level I Lecture 2 Fall, 2011 2 / 37 Overview Let s start our tour in macroeconomics by introducing a few building blocks, which will be used repeatedly later on.
More informationChapter 2. Measurement. Teaching Goals. Classroom Discussion Topics
Chapter 2 Measurement Teaching Goals Students must understand the importance of measuring aggregate economic activity. Macroeconomists produce theories that provide useful insights and policy conclusions.
More informationMEASURING GDP AND ECONOMIC GROWTH. Objectives. Gross Domestic Product. An Economic Barometer. Gross Domestic Product. Gross Domestic Product CHAPTER
MEASURING GDP AND ECONOMIC CHAPTER GROWTH Objectives After studying this chapter, you will able to Define GDP and use the circular flow model to explain why GDP equals aggregate expenditure and aggregate
More informationW8- GROSS DOMESTIC PRODUCT MEASURES TOTAL PRODUCTION BSB113
W8- GROSS DOMESTIC PRODUCT MEASURES TOTAL PRODUCTION BSB113 Gross Domestic Product (GDP): the market value of all final goods and services produced in a country during a period. In measuring GDP, we include
More informationWhat is Macroeconomics? Data. Macroeconomics II. Lecture 1: Introduction to Macroeconomics
Lecture 1: Introduction to Macroeconomics What is macroeconomics? What do we study? How do we study it? Macroeconomics: studies the whole economy main variables: real, inflation, unemployment usually dynamic
More informationMacroeconomics 5th Edition Williamson Test Bank Full Download:
Macroeconomics 5th Edition Williamson Test Bank Full Download: http://testbanklive.com/download/macroeconomics-5th-edition-williamson-test-bank/ Macroeconomics, 5e (Williamson) Chapter 2 Measurement 1)
More information7. a. i. Nominal GDP is the total value of goods and services measured at current prices. Therefore, ( ) ( Q burgers ) ( Q hotdogs ) + P burgers
Macroeconomics ECON 2204 Prof. Murphy Problem Set 1 Answers Chapter 2 #2, 4, 6, 7, 8, 9, and 11 (on pages 44-45) 2. Value added by each person is equal to the value of the good produced minus the amount
More informationMacroeconomics, 3e (Williamson) Chapter 2 Measurement
Macroeconomics, 3e (Williamson) Chapter 2 Measurement 1) The principal printed source for reporting the US National Income and Product Accounts is called the A) Monthly Labor Review B) Survey of Current
More informationGross Domestic Product. National Income Determination. Topic 9: 10/7/2016
The Economy s Income and Expenditure Topic 9: National Income Determination When judging whether the economy is doing well or poorly, it is natural to look at the total income that everyone in the economy
More informationMeasuring a Nation s Production and Income
Chapter Summary 5 Measuring a Nation s Production and Income In this chapter, we learned how economists and government statisticians measure the income and production for an entire country and what those
More informationFoundations of Economics for International Business Selected Solutions to Assignment 1
Foundations of Economics for International Business Selected Solutions to Assignment 1 INSTRUCTOR: XIN TANG Department of World Economics Economics and Management School Wuhan University Fall 2015 1 MULTIPLE
More informationMODERN PRINCIPLES OF ECONOMICS Third Edition ECON 322 INTERMEDIATE MACROECONOMIC THEORY
MODERN PRINCIPLES OF ECONOMICS Third Edition ECON 322 INTERMEDIATE MACROECONOMIC THEORY 1 MODERN PRINCIPLES OF ECONOMICS Third Edition Why learn about macroeconomics? 5 ECONOMIC QUESTIONS THAT WILL SHAPE
More informationUnit 4: Measuring GDP and Prices
Unit 4: Measuring GDP and Prices ECO 120 Global Macroeconomics 1 1.1 Reading Reading Gross Domestic Product (GDP): Module 11 Real vs Nominal GDP: Module 12 1.2 Goals Goals Specific Goals: Understand how
More informationECON Intermediate Macroeconomics (Professor Gordon) First Midterm Examination: Fall 2011 Answer sheet
ECON 311 - Intermediate Macroeconomics (Professor Gordon) First Midterm Examination: Fall 2011 Answer sheet YOUR NAME: Circle the TA session you attend: Ofer 9AM 4PM Nuri 4PM Juan 9AM INSTRUCTIONS: 1.
More informationCHAPTER 7. Price level and Inflation. Measuring the Price Level. What is price level? Def. Price level is the cost of a given market basket
CHAPTER 7 Price level and Inflation What is price level? Def. Price level is the cost of a given market basket Sasan Fayazmanesh What is price index? Def. Price index is the ratio of the cost of a given
More informationChapter 5: Production, Income and Employment
Chapter 5: Production, Income and Employment We will take our first look at production and employment, focusing on two key variables: Gross Domestic Product and Unemployment Rate The nation s Gross Domestic
More informationMacroeconomics 6th Edition Williamson SOLUTIONS MANUAL Full download at:
Macroeconomics 6th Edition Williamson SOLUTIONS MANUAL Full download at: Macroeconomics 6th Edition Williamson TEST BANK Full download at: https://testbankreal.com/download/macroeconomics-6th-edition-williamsonsolutions-manual-2/
More informationNational Income. Sherif Khalifa. Sherif Khalifa () National Income 1 / 28
National Income Sherif Khalifa Sherif Khalifa () National Income 1 / 28 People with higher incomes enjoy higher standards of living. To judge whether the economy is doing well, we look at the total income
More informationAnswer Key to Problem Set 1. Fall Total: 15 points 1.(2.5 points) Identify the variables below as a flow or stock variable :
Answer Key to Problem Set 1 Fall 2011 Total: 15 points 1.(2.5 points) Identify the variables below as a flow or stock variable : (a) stock (b) stock (c) flow (d) flow (e) stock 2.(4 points) a. i. Nominal
More informationPrinciples of Macroeconomics Introductory quiz
Principles of Macroeconomics Introductory quiz Academic Program: MSc in Banking and Finance Semester: Fall 2011/12 Instructor: Dr. Nikolaos I. Papanikolaou Office: Luxembourg School of Finance, KB2-E02
More informationMacroeconomic Measurement and Business Cycles
Macroeconomic Measurement and Business Cycles Economics 4353 - Intermediate Macroeconomics Aaron Hedlund University of Missouri Fall 2015 Econ 4353 (University of Missouri) Measurement and Business Cycles
More informationMacroeconomic Measurement and Business Cycles
Macroeconomic Measurement and Business Cycles Economics 3307 - Intermediate Macroeconomics Aaron Hedlund Baylor University Fall 2013 Econ 3307 (Baylor University) Measurement and Business Cycles Fall 2013
More informationCHAPTER 2 Measurement
CHAPTER 2 Measurement KEY IDEAS IN THIS CHAPTER 1. Measurements of key macroeconomic variables such as gross domestic product (GDP), the price level, inflation, unemployment, and so on motivate macroeconomists
More informationYear 2010 Year 2015 Nominal GDP $1000 $3000 Real GDP $1000 $2000. (P 0 Q t ) i. Nominal GDP t = i
Economics 285 Chris Georges Help With Practice Problems 1 1. Chapter 2. Problems and Applications 2,6: 1.2. $6 has been added to GDP in this example. We don t want to double-count the value of the wheat
More informationIntroduction to Macroeconomics
Week 1: General notes: o Macroeconomics studies the aggregate impact of individual decisions. Microeconomics studies decision-making by individual economic agents o In the study of macroeconomics, an economist
More informationPART EIGHT: THE DATA OF MACROECONOMICS. Measuring A Nation s Income
ECON 102 Chapter 22 1 PART EIGHT: THE DATA OF MACROECONOMICS Measuring A Nation s Income Chapter 23 What did we learn until now? In the first semester we covered microeconomics Microeconomics is the study
More informationThe Global Economy Introduction
The Global Economy Introduction Roadmap Big Picture Emerging markets and long run performance Business cycles and short run performance Foreign exchange and capital markets Course information 2 The big
More informationChapter 2 The Data of Macroeconomics
Chapter 2 The Data of Macroeconomics slide 0 Learning Objectives In this chapter, you will learn about: Gross Domestic Product (GDP) the Consumer Price Index (CPI) the Unemployment Rate slide 1 GROSS DOMESTIC
More informationText transcription of Chapter 5 Measuring a Nation s Income
Text transcription of Chapter 5 Measuring a Nation s Income Welcome to the Chapter 5 Lecture on the Measuring a Nation s Income. We are going to start working with statistics to measure the size of economies
More informationCHAPTER 3: MEASURING NATIONAL INCOME
CHAPTER 3: MEASURING NATIONAL INCOME CIA4U Unit 2 Macroeconomics: Economic Indicators Households sell factor services to the business sector and earn income; with this income, they pay for the goods and
More informationEconomic Performance. Sherif Khalifa. Sherif Khalifa () Economic Performance 1 / 39
Sherif Khalifa Sherif Khalifa () Economic Performance 1 / 39 People earning higher income levels enjoy higher living standards. To judge economic well being, we consider the total income in an economy.
More informationFull file at Macroeconomics, 11e (Gordon) Chapter 2 The Measurement of Income, Prices, and Unemployment
Macroeconomics, 11e (Gordon) Chapter 2 The Measurement of Income, Prices, and Unemployment 1) Job openings are plentiful when the A) actual real GDP is above the natural real GDP. B) natural real GDP is
More informationChapter 8- Measuring Total Production & Income. Distribution of GDP
Chapter 8- Measuring Total Production & Income Distribution of GDP 1 Keeping Tabs on the Economy You must be able to measure and track the economy in order to understand what is going on and react appropriately.
More informationNumber of Unemployed Unemployment Rate Labor Force
Macroeconomics Canadian 5th Edition Mankiw Solutions Manual Full Download: https://testbanklive.com/download/macroeconomics-canadian-5th-edition-mankiw-solutions-manual/ CHAPTER 2 The Data of Macroeconomics
More informationMeasuring a Nation s Income
Measuring a Nation s Income Microeconomics 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
More informationIntroduction. Learning Objectives. Chapter 8. Measuring the Economy s Performance
Chapter 8 Measuring the Economy s Performance Introduction For a number of years, measured U.S. business investment spending on capital goods has declined relative to total national expenditures on goods
More informationMacroeconomics, 12e (Gordon) Chapter 2 The Measurement of Income, Prices, and Unemployment
Macroeconomics, 12e (Gordon) Chapter 2 The Measurement of Income, Prices, and Unemployment 2.1 Why We Care About Income 1) Job openings are plentiful when the A) actual real GDP is above the natural real
More informationPrice and Volume Measures Rebasing & Linking
Regional Course on 2008 SNA (Special Topics): Improving Exhaustiveness of GDP coverage 31 August 4 September 2015 Daejeon, Republic of Korea Price and Volume Measures Rebasing & Linking Alick Nyasulu Statistical
More informationNational Income. Sherif Khalifa. Sherif Khalifa () National Income 1 / 44
National Income Sherif Khalifa Sherif Khalifa () National Income 1 / 44 People with higher incomes enjoy higher standards of living. To judge how the economy is doing, we look at the total income of everyone
More information1. The economic statistic used to measure the level of prices is: A) GDP. B) CPI. C) GNP. D) real GDP.
1. The economic statistic used to measure the level of prices is: A) GDP. B) CPI. C) GNP. D) real GDP. 2. The statistic used by economists to measure the value of economic output is: A) the CPI. B) GDP.
More information1 of 33. Measuring a Nation s Production and Income. 2 of 33
1 of 33 2 of 33 The methods our government uses today to measure our economy, which we will study in this chapter, were developed in the 1930s. P R E P A R E D B Y FERNANDO QUIJANO, YVONN QUIJANO, AND
More informationEconomic Performance. Sherif Khalifa. Sherif Khalifa () Economic Performance 1 / 55
Sherif Khalifa Sherif Khalifa () Economic Performance 1 / 55 People earning higher income levels also enjoy higher living standards. To judge economic well being, we consider the total income of an economy.
More informationMEASURING A NATION S INCOME
10 MEASURING A NATION S INCOME LEARNING OBJECTIVES: By the end of this chapter, students should understand: why an economy s total income equals its total expenditure. how gross domestic product (GDP)
More informationGross Domestic Product: Measuring the Nation s Output
Measuring Economic Activity: GDP and Unemployment Gross Domestic Product (GDP) The market value of the final goods and services produced in a country during a given period Chapter 5: Measuring Economic
More informationChapter 2 The Data of Macroeconomics
Chapter 2 The Data of Macroeconomics Zhengyu Cai Ph.D. Institute of Development Southwestern University of Finance and Economics All rights reserved http://www.escience.cn/people/zhengyucai/index.html
More informationMeasuring Income and Prices
Measuring Income and Prices Mark Huggett Georgetown University January 12, 2018 Income and Prices 1. These slides will review different ways to compute GDP. The Bureau of Economic Analysis (BEA) calculates
More informationDecision Makers and Markets
Decision Makers and Markets Households S FINANCIAL Wages Rent Interest Profit T Budget C I Factors M. (Capital Labor) Government G Goods & Services Rest of world Firms Decision Makers and Markets Households
More informationChapter 2: The Measurement and Structure of the National Economy
Chapter 2: The Measurement and Structure of the National Economy Yulei Luo SEF of HKU January 22, 2014 Luo, Y. (SEF of HKU) ECON2220: Macro Theory January 22, 2014 1 / 26 Chapter Outline National Income
More informationMEASURING NATIONAL OUTPUT AND NATIONAL INCOME. Chapter 18
1 MEASURING NATIONAL OUTPUT AND NATIONAL INCOME Chapter 18 national income and product accounts Data collected and published by the government describing the various components of national income and output
More informationChapter 2. The Measurement and Structure of the Canadian Economy. Copyright 2009 Pearson Education Canada
Chapter 2 The Measurement and Structure of the Canadian Economy Copyright 2009 Pearson Education Canada National Income Accounting The national income accounts is an accounting framework used in measuring
More informationChapter 6 Measuring National Output and National Income
Chapter 6 Measuring National Output and National Income 1 Multiple Choice 1) The total market value of all final goods and services produced within a given period by factors of production located within
More informationfile:///c:/users/moha/desktop/mac8e/new folder/coursecompass_fi... Creation Settings
file:///c:/users/moha/desktop/mac8e/new folder/coursecompass_fi... COURSES > BA121 > CONTROL PANEL > POOL MANAGER > POOL CANVAS Add, modify, and remove questions. Select a question type from the Add drop-down
More informationMEASURING A NATION S INCOME
23 MEASURING A NATION S INCOME WHAT S NEW IN THE FOURTH EDITION: There is a new In the News box on The Underground Economy. LEARNING OBJECTIVES: By the end of this chapter, students should understand:
More informationPART 6 The macroeconomic environment
PART 6 The macroeconomic environment 1 of 38 Economy s Income & Expenditure Gross Domestic Product (GDP) Measures the total income of everyone in the economy Measures the total expenditure on the economy
More informationGross Domestic Product (Measure of Economic Activity)
Web: www.bea.doc.gov Monthly revisions, annual revisions in July, benchmark changes every years. Gross Domestic Product (Measure of Economic Activity) Gross domestic product (GDP) total value of all final
More information"Data, data, data: how can I make bricks without clay?".
1 Measurement As explained in the previous chapter, measurement is a key component of the scientific method and is necessary to develop and validate theories. Sherlock Holmes, one of the masters of (investigative
More informationProduction, Income and Employment
CAPTER 6 Production, Income and Employment Sasan ayazmanesh Summary Summary: This chapter deals with the following macroeconomic concepts: 1) National income accounting: how to measure the value of goods
More informationLecture Investment and Saving
Lecture 3-1 4. Investment and Saving Investment is the portion of final product that adds to the nation s stock of income-yielding physical assets or that replaces old, worn-out physical assets. The goods
More informationThe Economic Outlook
The Economic Outlook Nigel Gault Group Managing Director North American Macroeconomic Services FTA Revenue Estimating Conference Portland, Oregon September 8, Copyright Global Insight, Inc. U.S. Growth
More informationContact Details. Administrative Stuff. Section 14 Agenda. Important to remember: Measuring Price Level and Inflation
Contact Details ECON 1 Section 14 Measuring Price Level and Inflation GSI: Ramon Estopina Office Hours: Thursday 1:45-3:45 PM Office: Evans 508-7 Email: estopina@haas.berkeley.edu Handouts (only sections
More information2 Some Essential Macroeconomic Aggregates
2 Some Essential Macroeconomic Aggregates 2.1 Defining Gross Domestic Product (GDP) 2.2 Deriving GDP in Volume 2.3 Defining Demand: the Role of Investment and Consumption 2.4 Reconciling Global Output
More informationProfessor Christina Romer. LECTURE 15 MACROECONOMIC VARIABLES AND ISSUES March 9, 2017
Economics 2 Spring 2017 Professor Christina Romer Professor David Romer LECTURE 15 MACROECONOMIC VARIABLES AND ISSUES March 9, 2017 I. MACROECONOMICS VERSUS MICROECONOMICS II. REAL GDP A. Definition B.
More informationGDP Measuring Output and Income Part II. Alternative Measures Real World Approximations. September 13 th, 2017
GDP Measuring Output and Income Part II Alternative Measures Real World Approximations September 13 th, 2017 But First: A Continual Challenge: Connecting words and equations We describe economic circumstances
More informationLECTURE NOTES ON MACROECONOMIC PRINCIPLES
LECTURE NOTES ON MACROECONOMIC PRINCIPLES Peter Ireland Department of Economics Boston College peter.ireland@bc.edu http://www2.bc.edu/peter-ireland/ec132.html Copyright (c) 2013 by Peter Ireland. Redistribution
More informationSTUDY UNITS COVERED : STUDY UNITS 1-2. DUE DATE : 3:00 p.m. 20 AUGUST 2013
Page 1 of 8 ASSIGNMENT 2 ND SEMESTER : MACROECONOMICS (MAC) ECONOMICS 1 (ECO101) STUDY UNITS COVERED : STUDY UNITS 1-2 DUE DATE : 3:00 p.m. 20 AUGUST 2013 TOTAL MARKS : 100 INSTRUCTIONS TO CANDIDATES FOR
More informationIntroduction. Learning Objectives. Chapter 8. Measuring the Economy s Performance
Copyright 2012 Pearson Addison-Wesley. All rights reserved. Chapter 8 Measuring the Economy s Performance Introduction Does a general increase in the level of a nation s economic activity and the resulting
More informationECONOMICS SOLUTION BOOK 2ND PUC. Unit 8. Part A
Unit 8 Part A I. Choose the correct answer (each question carries 1 mark) 1. The study of National Income is related to: a) Micro economics b) Macro Economics c) Both Micro and Macro d) None of the above
More informationLecture 5: Measuring a Nation s Wealth. Rob Godby University of Wyoming
Lecture 5: Measuring a Nation s Wealth Rob Godby University of Wyoming Macroeconomics Macroeconomics is the study of the economy as a whole. Its goal is to explain the economic changes that affect many
More informationChapter 11 Macroeconomic Issues: Economic Growth and the Business Cycle
Chapter 11 Macroeconomic Issues: Economic Growth and the Business Cycle Multiple Choice Questions Choose the one alternative that best completes the statement or answers the question. 1. The sources of
More information