Mankiw Economics Chap_22 中山大學吳柏林教授“曼昆·經濟學原理”絕密資料

1、Measuring a Nations IncomeChapter 22Copyright 2001 by Harcourt, Inc.All rights reserved. Requests for permission to make copies of any part of thework should be mailed to:Permissions Department, Harcourt College Publishers,6277 Sea Harbor Drive, Orlando, Florida 32887-6777.MicroeconomicsuMicroeconom

2、ics is the study of how individual households and firms make decisions and how they interact with one another in markets.MacroeconomicsuMacroeconomics is the study of the economy as a whole.uIts goal is to explain the economic changes that affect many households, firms, and markets at once.Macroecon

3、omicsuMacroeconomics answers questions like the following:uWhy is average income high in some countries and low in others? uWhy do prices rise rapidly in some time periods while they are more stable in others? uWhy do production and employment expand in some years and contract in others? The Economy

4、s Income and ExpenditureWhen judging whether the economy is doing well or poorly, it is natural to look at the total income that everyone in the economy is earning.The Economys Income and ExpenditureuFor an economy as a whole, income must equal expenditure because:uEvery transaction has a buyer and

5、a seller.uEvery dollar of spending by some buyer is a dollar of income for some seller. uGross domestic product (GDP) is a measure of the income and expenditures of an economy.uIt is the total market value of all final goods and services produced within a country in a given period of time.Gross Dome

6、stic ProductThe Circular-Flow DiagramThe equality of income and expenditure can be illustrated with the circular-flow diagram.The Circular-Flow DiagramFirmsHouseholdsMarket for Factors of ProductionMarket for Goods and ServicesSpendingRevenueWages, rent, and profitIncomeGoods & Services soldGood

7、s & Services boughtLabor, land, and capitalInputs for productionThe Measurement of GDPGDP is the market value of all final goods and services produced within a country in a given period of time.The Measurement of GDPuOutput is valued at market prices.uIt records only the value of final goods, no

8、t intermediate goods (the value is counted only once).uIt includes both tangible goods (food, clothing, cars) and intangible services (haircuts, housecleaning, doctor visits). The Measurement of GDPuIt includes goods and services currently produced, not transactions involving goods produced in the p

9、ast.uIt measures the value of production within the geographic confines of a country.uIt measures the value of production that takes place within a specific interval of time, usually a year or a quarter (three months). The Measurement of GDPWhat Is Counted in GDP?GDP includes all items produced in t

10、he economy and sold legally in markets.What Is Not Counted in GDP?uGDP excludes most items that are produced and consumed at home and that never enter the marketplace.uIt excludes items produced and sold illicitly, such as illegal drugs.Other Measures of IncomeuGross National Product (GNP)uNet Natio

11、nal Product (NNP)uNational IncomeuPersonal IncomeuDisposable Personal IncomeGross National ProductuGross national product (GNP) is the total income earned by a nations permanent residents (called nationals).uIt differs from GDP by including income that our citizens earn abroad and excluding income t

12、hat foreigners earn here.Net National Product (NNP)uNet National Product (NNP) is the total income of the nations residents (GNP) minus losses from depreciation.uDepreciation is the wear and tear on the economys stock of equipment and structures.National IncomeuNational Income is the total income ea

13、rned by a nations residents in the production of goods and services.uIt differs from NNP by excluding indirect business taxes (such as sales taxes) and including business subsidies. Personal IncomeuPersonal income is the income that households and noncorporate businesses receive.uUnlike national inc

14、ome, it excludes retained earnings, which is income that corporations have earned but have not paid out to their owners. uIn addition, it includes households interest income and government transfers. Disposable Personal IncomeuDisposable personal income is the income that household and noncorporate

15、businesses have left after satisfying all their obligations to the government.uIt equals personal income minus personal taxes and certain nontax payments.The Components of GDPGDP (Y ) is the sum of the following:u Consumption (C)u Investment (I)u Government Purchases (G)u Net Exports (NX)Y = C + I +

16、 G + NXThe Components of GDPuConsumption (C):uThe spending by households on goods and services, with the exception of purchases of new housing.uInvestment (I):uThe spending on capital equipment, inventories, and structures, including new housing.The Components of GDPuGovernment Purchases (G):uThe sp

17、ending on goods and services by local, state, and federal governments.uDoes not include transfer payments because they are not made in exchange for currently produced goods or services.uNet Exports (NX):uExports minus imports.GDP and Its Components (1998)Total(in billions of dollars)Per Person(in do

18、llars)% of TotalGross domestic product, Y$8,511$31,522100 percentConsumption, C5,80821,51168Investment, I1,3675,06316Government purchases, G1,4875,50718Net exports, NX-151-559-2GDP and Its Components (1998)GDP and Its Components (1998)Consumption 68 %Investment16%GDP and Its Components (1998)Consump

19、tion 68 %Consumption 68 %Government Purchases18%GDP and Its Components (1998)Investment16%Net Exports -2 %GDP and Its Components (1998)Consumption 68 %Investment16%Government Purchases18%Real versus Nominal GDPuNominal GDP values the production of goods and services at current prices.uReal GDP value

20、s the production of goods and services at constant prices. Real versus Nominal GDPAn accurate view of the economy requires adjusting nominal to real GDP by using the GDP deflator.GDP DeflatoruThe GDP deflator measures the current level of prices relative to the level of prices in the base year.uIt t

21、ells us the rise in nominal GDP that is attributable to a rise in prices rather than a rise in the quantities produced. GDP Deflator100GDP RealGDP Nominal=deflator GDPThe GDP deflator is calculated as follows:100X )deflator (GDP) GDP (Nominal =GDP Real20 xx20 xx20 xxConverting Nominal GDP to Real GD

22、PNominal GDP is converted to real GDP as follows:Real and Nominal GDPYearPrice ofHot dogsQuantity ofHot dogsPrice of HamburgersQuantity ofHamburgers2001$1100$2502002$2150$31002003$3200$4150Real and Nominal GDPCalculating Nominal GDP:2001($1 per hot dog x 100 hot dogs) + ($2 per hamburger x 50 hambur

23、gers) = $2002002($2 per hot dog x 150 hot dogs) + ($3 per hamburger x 100 hamburgers) = $6002003($3 per hot dog x 200 hot dogs) + ($4 per hamburger x 150 hamburgers) = $1200Real and Nominal GDPCalculating Real GDP (base year 2001):2001($1 per hot dog x 100 hot dogs) + ($2 per hamburger x 50 hamburge

24、rs) = $2002002($1 per hot dog x 150 hot dogs) + ($2 per hamburger x 100 hamburgers) = $3502003($1 per hot dog x 200 hot dogs) + ($2 per hamburger x 150 hamburgers) = $500Real and Nominal GDPCalculating the GDP Deflator:2001($200/$200) x 100 = 1002002($600/$350) x 100 = 1712003($1200/$500) x 100 = 24

25、0(Periods of falling real GDP)Real GDP in the United States1970197519801985199019953,0004,0005,0006,0007,000Billions of 1992 Dollars20008,000GDP and Economic Well-BeinguGDP is the best single measure of the economic well-being of a society. uGDP per person tells us the income and expenditure of the

26、average person in the economy.GDP and Economic Well-BeinguHigher GDP per person indicates a higher standard of living.uGDP is not a perfect measure of the happiness or quality of life, however.GDP and Economic Well-BeinguSome things that contribute to well-being are not included in GDP.uThe value of

27、 leisure.uThe value of a clean environment.uThe value of almost all activity that takes place outside of markets, such as the value of the time parents spend with their children and the value of volunteer work.GDP, Life Expectancy, and LiteracyCountryReal GDP perPerson (1997)LifeExpectancyAdultLiter

28、acyUnited States$29,01077 years99%Japan24,0708099Germany21,2607799Mexico8,3707290Brazil6,4806784Russia4,3706799Indonesia3,4906585China3,1307083India1,6706353Pakistan1,5606441Bangladesh1,0505839Nigeria9205059SummaryuBecause every transaction has a buyer and a seller, the total expenditure in the econ

29、omy must equal the total income in the economy.uGross Domestic Product (GDP) measures an economys total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.SummaryuGDP is the market value of all final goods and services produced within a country in a given period of time.uGDP is divided among four components of expenditure: consumption, investment, government purchases, and net exports.SummaryuNominal GDP