1 / 13

National-Income Accounting: Gross Domestic Product and the Price Level

C h a p t e r 2. National-Income Accounting: Gross Domestic Product and the Price Level. 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. Nominal GDP.

finn-ayala
Télécharger la présentation

National-Income Accounting: Gross Domestic Product and the Price Level

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

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

  2. 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 2

  3. 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 2

  4. Macroeconomics Chapter 2

  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 2

  6. Calculations • (nominal GDP)/(implicit price level) = real GDP or • implicit price level = (nominal GDP)/(real GDP) Macroeconomics Chapter 2

  7. 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 2

  8. GDP by Expenditure • Personal Consumption Expenditures • Gross Private Domestic Investment • Government purchases of Goods and Services • Exports and Imports Macroeconomics Chapter 2

  9. Macroeconomics Chapter 2

  10. Measuring GDP by Income • National Income – Income earned by factors of production. Macroeconomics Chapter 2

  11. Relationship between GDP and National Income Macroeconomics Chapter 2

  12. National Income by Sector Macroeconomics Chapter 2

  13. Prices • Consumer Price Index (CPI) • Producer Price Index (PPI) • Problem of CPI(PPI) substitution quality new production Macroeconomics Chapter 2

More Related