Macroeconomics Chapter 21 National-Income Accounting: Gross Domestic Product and the Price Level C h a p t e r 2

Macroeconomics Chapter 22 Nominal GDP  the dollar (or euro, etc.) value of all the goods and services that an economy produces during a specified period, such as a year.

Macroeconomics Chapter 23 Nominal GDP Flow variable - it measures the dollar amount of goods produced per unit of time, such as a year. GDP in current dollars Services by government: measured by costs

Macroeconomics Chapter 24

5 Real GDP  Calculating Real GDP GDP in constant dollars Multiply each year ’ s quantity of output of each good by the price of the good in a base year. Chain-weighted real GDP

Macroeconomics Chapter 26 Calculations  (nominal GDP)/(implicit price level) = real GDP or  implicit price level = (nominal GDP)/(real GDP)

Macroeconomics Chapter 27 GDP as a Welfare Measure GDP does not:  Consider change in income distribution  Include non-market goods.  Assign value to leisure.  Consider environmental damage.

Macroeconomics Chapter 28 Question:  考虑给某政府的建议：如何在短时间内提 高 GDP ，以便有益于政绩宣传？ 注意：不能做假账。  对于大家痛恨的政绩工程，你有什么办法 去制止？

Macroeconomics Chapter 29 Government purchases of goods and services Government purchases of goods and services Y = C + I + G + NX Gross domestic Product (GDP) Gross domestic Product (GDP) is composed of is composed of Consumption spending by households Consumption spending by households Investment spending by businesses and households Investment spending by businesses and households Net exports or net foreign demand Net exports or net foreign demand This is the called the national income accounts identity. GDP by Expenditure

Macroeconomics Chapter 210

Macroeconomics Chapter 211 Measuring GDP by Income  National Income – Income earned by factors of production.

Macroeconomics Chapter 212 Measuring GDP by Income  正视现实： 中国的国民收入中间，劳动者的收入占比 逐年递减。

Macroeconomics Chapter 213 Relationship between GDP and National Income

Macroeconomics Chapter 214 National Income by Sector

Macroeconomics Chapter 215 Prices  Consumer Price Index (CPI)  Producer Price Index (PPI)  Problem of CPI(PPI) substitution quality new production

Macroeconomics Chapter 216 Question:  What is the difference between implicit GDP deflator & CPI? 全部商品 --- 消费品 中国生产 --- 中国消费 权重： 例如一场霜冻摧毁了全部柑橘 (substitution)