1 / 14

Chapter 12: GDP and Growth

Chapter 12: GDP and Growth. Section 1: Gross Domestic Product Section 2: Business Cycles Section 3: economic Growth. WRITE ALL BLACK FONT THANGS. Section 1: Gross Domestic Product. Nation income accounting

peter-shepard
Télécharger la présentation

Chapter 12: GDP and Growth

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. Chapter 12: GDP and Growth Section 1: Gross Domestic Product Section 2: Business Cycles Section 3: economic Growth WRITE ALL BLACK FONT THANGS

  2. Section 1: Gross Domestic Product • Nation income accounting • A system that collects macroeconomic statistics on production, income, investment, and savings • Gross Domestic Product • The dollar value of all final goods and services produced within a country’s boarders in a given year

  3. Section 1: GDPtypes of goods • Intermediate goods • Goods used in production of final goods • Durable goods • Goods that last for a relatively long time such as refrigerators, cars, and DVD players • Nondurable goods • Goods that last a short period of time, such as food, light bulbs, and sneakers

  4. Different GDP’s • Nominal GDP • GDP measured in current prices • Real GDP • GDP expressed in constant, or unchanging, prices

  5. Not gdp….. • Gross National Product • The annual income earned by U.S. owned firms and U.S. citizens • Depreciation • The loss of capital equipment that results form normal wear and tear

  6. How we add this up… • GDP + income earned outside the U.S. by U.S. firms and citizens – income earned by foreign firms and foreign citizens located in the U.S. = GNP • GNP – depreciation of capital equipment = Net Nation Product • Net Nation Product – excise taxes = National income

  7. Supply and Demand to the extreme • Aggregate supply • The total amount of goods and services in the economy available at all possible price levels • Aggregate demand • The amount of goods and services in the economy that will be purchased at all possible price levels

  8. Section 2: Business Cycles • Business cycle • A period of macroeconomic expansion followed by a period of contraction

  9. Business cycles • Expansion • a period of economical growth as measured by a rise in real GDP • Peak, contraction, trough, expansion • waves

  10. ion’s • Recession • A prolonged economic contraction • Depression • A recession that is especially long and severe • Stagflation • A decline in real GDP combined with a rise in price level

  11. Government influence over this cycle • Only a few ways government can help • Taxes • Federal Interest Rates • Government Spending

  12. Section 3: Economic Growth • Measuring Economic Growth • We can use GDP to measure standard of living, which relates to material goods. • We cannot use it, however as a complete measure of people’s quality of life.

  13. Section 3: Economic Growth • Saving and Investment • Income that is not used for consumption is called saving. • The proportion of disposable income that is saved is called the savings rate.

  14. Section 3: Economic Growth • Technological Progress • Technological Progress is an increase in efficiency gained by producing more output without using more inputs. • Causes of Technological Progress • Scientific Research • Innovation • Scale of the Market • Education and Experience • Natural Resource Use

More Related