Measuring the Nation’s Output

Slides:

Advertisements

Similar presentations

Economic Performance- Part Dos. GNP When economists measure income, they use Gross National Product GNP- the dollar value of all final goods, services,

Advertisements

Measuring the Nation’s Output

National-Income Accounting

Agenda- 12/2 1. Turn in 8.1 Labor WS, Tucker Questions, and Guided reading WS (yellow) 2. Current Events 3. Review Taxes and GDP 4. Unit 3 Quiz 5. Stock.

1 National Income and Product Accounting Gross vs. Net Domestic vs. National Product vs. Income.

Maclachlan, Macroeconomics, 9/30/04 1 Principles and Policies I: Macroeconomics Chapter 7: National Income Accounting.

Chapter 13 Economic Performance

Chapter 15 Gross Domestic Product

Chapter 11 Practice Quiz Tutorial Gross Domestic Product

Learning Objectives Know what GDP measures – and what it doesn’t Know the difference between real and nominal GDP Know why aggregate.

NATIONAL INCOME ACCOUNTING

Macroeconomics - ECO 2013 Fall 2005 – 1 Term August 24 – December 16, 2005.

Measuring the Nation’s Output Objectives: Describe methods by which the U.S. measures domestic output, national income, and price level. Identifying the.

07 Measuring Domestic Output and National Income McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

7 - 1 Copyright McGraw-Hill/Irwin, 2005 Assessing the Economy’s Performance Gross Domestic Product Expenditures Approach Income Approach Other National.

Measuring Domestic Output, National Income and the Price Level Chapter 7 Time period = 2 to 3 weeks.

Measuring Domestic Output & National Income

Chapter 7 Chapter 7 Measuring Domestic Output, National Income & Price Level.

24 Measuring Domestic Output and National Income McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Measuring National Output Chapter 5. Economic goals  Economic growth  Full employment  Low inflation  An economy grows because of increases in available.

Ch notes: Measuring Nations Output. I.GDP- dollar amount value of all final goods and services produced in a country in a year. A. sampling method.

Eco 13/1 Macroeconomics: The Nation’s Economy. National Income Accounting  To determine the health of the US economy, economists calculate the national.

Beginning Activities Title today’s lesson: Measuring the Nation’s Output Notes Activity: Measures of National Income Mission Statement: To prepare you.

Chapter 5 National Income Accounting. Economy  Structure of economic life and activity in an area  Macroeconomics – study of the whole economy, theories,

Measuring National Products:  Gross Domestic Products (GDP):  Measuring GDP :  The Aggregate Expenditure (AE) approach  The production approach  The.

Measuring Economic Growth. Write and answer the following questions on a separate piece of paper. 1.Define GDP.p320 2.What items are not included in calculating.

7 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Measuring Domestic Output and National Income.

1 Gross Domestic Product ©2006 South-Western College Publishing.

Measuring Domestic Output, National Income and the Price Level Chapter 7 Time period = 2-3 weeks.

Eco 200 – Principles of Macroeconomics Chapter 7: National Income Accounting.

National Income Accounting How Do We Measure The Size and Health of an Economy?

Gross Domestic Product. National Income Accounting is a system used to measure the aggregate income and expenditures for a nation Gross Domestic Product.

Economic Environment Analysis

Unit IV: Macroeconomics Policies pp Chapter 13 Economic Performance Gross Domestic Product aka: GDP The dollar amount of all final goods and.

Measuring Domestic Output, National Income, and the Price Level CH 7 *

Measuring Domestic Output, National Income, and the Price Level 7 C H A P T E R.

GDP GROSS DOMESTIC PRODUCT. MEASURE OF ECONOMIC OUTPUT Macro keeps track of production, consumption, saving, investment, & income GDP is used to track.

Kick off 4/13 What do you think about the cartoon on page 343?

Lecture 2. Gross National Product The market value of the goods and services produced within a given period by nationals (residents of a nation). It includes.

24 Measuring Domestic Output and National Income McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

7 - 1 Copyright McGraw-Hill/Irwin, 2002 Importance of Macroeconomic Measurement Gross Domestic Product Expenditures Approach Income Approach Other National.

Chapter 7 Measuring Domestic Output and National Income Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.

Do Now - GDP Why, do you think, it is important for individuals, businesses, and countries to track what they produce over the course of a year? What are.

Measuring the Nation’s Output and Income

Measuring Domestic Output and National Income

National-Income Accounting

Chapter 11 Gross Domestic Product

Measuring the Nation’s Output and Income

4 GDP & National income accounting

Warm Up What is a glass ceiling? What is minimum wage?

Measuring the Nation’s Output and Income

ECONOMIC PERFORMANCE.

Measuring Domestic Output and National Income

Measuring Domestic Output, National Income and the Price Level

Measuring Domestic Output,

Gross Domestic Product

Macroeconomic Performance Ch. 12

National Income Accounting

Measuring Domestic Output and National Income

Gross Domestic Product and other Indicators

Measuring Domestic Output and National Income

Chapter 13 – Economic Performance

GDP—The Measure of National Output (cont.)

Economic Performance Chapter 13.

ECONOMIC PERFORMANCE CHAPTER 13.

GDP Chapter 13.

Measuring a Nation’s Income

GDP: Measuring the National Economy

Part 2 Topics Measuring Domestic Output and National Income

Presentation transcript:

Measuring the Nation’s Output Chapter 13, Section 1

Gross Domestic Product (GDP) Most important measure of economy’s overall performance GDP= final goods + final services + final structures (pg 342, Figure 13.1) Production in U.S. plants located in Mexico, Canada or other countries is not counted

What is excluded? Intermediate products – products that are used to make other products Secondhand sales – sales of used goods Nonmerchant transactions – transactions that do not take place in the market Underground economy – illegal and unreported activity (gambling, smuggling, drugs, and counterfeiting)

Limitations of GDP Tell us nothing about composition of output Tells us little about the impact of the quality of life Despite limitations it is still our best overall measure of economic health

Measure of National Income (pg.345, Figure 13.2) Gross National Product (GNP): the dollar value of all final goods, services and structures produced in one year Income of all Americans Payments to Americans – Payments to Foreign Countries = GDP -> GNP

GNP – Measure of National Income Net National Product (NNP): GNP less depreciation National Income (NI): income left after all taxes (except corporate profits tax) subtracted from NNP Personal Income (PI): total income going to consumers before individual income taxes are subtracted

National Income -> Personal Income Subtract income that does not go to the consumer Subtract corporate income Subtract Social Security contributions Add back Social Security, Medicaid, etc.

Disposable Personal Income (DI) Total income the consumer sector has at its disposal after personal income taxes

Circular Flow of Economic Activity Page 347, Figure 13.3

Output-Expenditure Model Macroeconomic model used to show demand by the consumer, investment, government and foreign sectors GDP= C + I + G + (X-M)