TAILIEUCHUNG - Lecture Economics (18th edition): Chapter 24 - McConnell, Brue, Flynn's

Chapter 24 - Measuring domestic output and national income. After reading this chapter, you should be able to: Explain how gross domestic product (GDP) is defined and measured; describe the relationships among GDP, net domestic product, national income, personal income, and disposable income; discuss the nature and function of a GDP price index, and describe the difference between nominal GDP and real GDP; list and explain some limitations of the GDP measure. | Measuring Domestic Output and National Income Chapter 24 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Objectives Define and measure GDP GDP and income relationships The GDP price index Nominal GDP vs. real GDP Limitations of the GDP measure 24- Bureau of Economic Analysis compiles National Income and Product Accounts Assess health of economy Track long run course Formulate policy National Income Accounting 24- Gross Domestic Product Measure of aggregate output Monetary measure Avoid multiple counting Market value final goods Ignore intermediate goods Count value added 24- Gross Domestic Product Exclude financial transactions Public transfer payments Private transfer payments Stock (and bond) market transactions Second hand sales Sell used car to a friend 24- Two Approaches to GDP Income approach Count income derived from production Wages, rental income, interest income, profit Expenditure approach Count sum of money spent buying the final goods Who buys the goods? 24- G D P = = + Consumption by Households Investment by Businesses Government Purchases Expenditures By Foreigners + + + + + Wages Rents Interest Profits Statistical Adjustments + Two Approaches to GDP 24- Expenditure Approach Personal consumption expenditures (C) Durable consumer goods Nondurable consumer goods Consumer expenditures for services Domestic plus foreign produced 24- Expenditure Approach Gross private domestic investment (I) Machinery, equipment, and tools All construction Changes in inventories Creation of new capital asset Noninvestment transactions 24- Expenditure Approach January 1 Year’s GDP December 31 Consumption & Government Spending Depreciation Net Investment Gross Investment Stock of Capital Increase Stock of Capital Gross Investment Depreciation Net Investment - = 24- Expenditure Approach Government purchases (G) Expenditures for goods and services Expenditures for social capital Excludes .

• Kinh tế học
• Lecture Microeconomics
• Economic problem
• Measuring domestic output
• National income
• The GDP price index
• Microeconomics theory
• Microeconomics applications
• Kinh tế vĩ mô
• Scope of microeconomic theory
• Normative analyses
• Demand curves
• Supply curves
• Consumer choice
• Theory of consumer choice
• Consumption choices
• Substitution effects
• Consumer choice theory
• Excise subsidies
• Economic efficiency
• Competitive equilibrium
• Relating output to inputs
• Empirical estimation
• Cost of production
• Shortrun cost
• Profit maximization
• Perfectly competitive markets
• Competitive model
• Excise taxation
• Monopolist’s demand
• Marginal revenue curves
• Product pricing
• Monopoly power
• Monopolistic competition
• Cournot model
• Game theory
• Economics of information
• Noncompetitive market models
• Iterated dominance
• Input demand curve
• Leisure choice
• Wage rates
• Minimum wage
• Hidden costs
• General equilibrium analysis
• Public goods