TAILIEUCHUNG - Lecture Economics (6/e): Chapter 9 - Stephen L. Slavin
Chapter 9 - Gross domestic product. In this chapter, we will address the following questions: What is GDP? How is GDP measured? What are the national income accounts? What is the difference between GDP and real GDP? How does our GDP compare to those of other nations? How is per capita GDP calculated? What are the shortcomings of GDP as a measure of national economic well-being? | Chapter 9 Gross Domestic Product 9-1 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Objectives What is GDP? How is GDP measured? What are the national income accounts? What is the difference between GDP and real GDP? How does our GDP compare to those of other nations? How is per capita GDP calculated? What are the shortcomings of GDP as a measure of national economic well-being? 9-2 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. GDP is the nation’s expenditures on all FINAL goods and services produced during the year at market prices. What Is GDP? 9-3 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 9-4 Consumption Durable goods $ 820 Nondurable goods 2,010 Services 3,929 Total C .$6,759 Investment Plant & Equipment .$ 1,361 Residential Housing 416 Inventory change . 57 Total I .1,834 Government Purchases Federal .$ 595 State and Local . .1,148 Total G $1,743 Net Exports (Xn) Exports .$ 1,099 Imports - 1,466 Xn $ - 370 GDP $9,966 The Components of GDP, 2000 (in $ billions) Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 9-5 Consumption Durable goods $ 820 Nondurable goods 2,010 Services 3,929 Total C .$6,759 Investment Plant & Equipment .$ 1,361 Residential Housing 416 Inventory change . 57 Total I .1,834 Government Purchases Federal .$ 595 State and Local . .1,148 Total G $1,743 Net Exports (Xn) Exports .$ 1,099 Imports - 1,466 Xn $ - 370 GDP $9,966 The Components of GDP, 2000 (in $billions) GDP = C + I + G + Xn GDP =6,759+1,834+1,743+(-370) GDP = 9,966 Copyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved. How GDP Is Measured? Households Firms $ $ Income (wages, salary, rent, interest, profits) Expenditures by .
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