第02章The Science of Macroeconomics.ppt

MACROECONOMICS ? 2010 Worth Publishers, all rights reserved S E V E N T H E D I T I O N PowerPoint? Slides by Ron Cronovich N. Gregory Mankiw C H A P T E R The Science of Macroeconomics 2 Modified for EC 204 by Bob Murphy In this chapter, you will learn: …the meaning and measurement of the most important macroeconomic statistics: Gross Domestic Product (GDP) The Consumer Price Index (CPI) The Unemployment Rate CHAPTER 2 The Data of Macroeconomics Gross Domestic Product:  Expenditure and Income Two definitions: Total expenditure on domestically-produced final goods and services. Total income earned by domestically-located factors of production. CHAPTER 2 The Data of Macroeconomics The Circular Flow Households Firms CHAPTER 2 The Data of Macroeconomics CHAPTER 2 The Data of Macroeconomics Gross Domestic Product: Expenditure and Income One caveat: Measurement of income and expenditure is imperfect. Difference in GDP and Gross Domestic Income GDI) is called the “Statistical Discrepancy.” CHAPTER 2 The Data of Macroeconomics Value added Value added: The value of output minus the value of the intermediate goods used to produce that output NOW YOU TRY: Identifying value-added A farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and sells it to a baker for $3.00. The baker uses the flour to make a loaf of bread and sells it to an engineer for $6.00. The engineer eats the bread. Compute value added at each stage of production and GDP CHAPTER 2 The Data of Macroeconomics Final goods, value added, and GDP GDP = value of final goods produced = sum of value added at all stages of production. The value of the final goods already includes the value of the intermediate goods, so including intermediate and final goods in GDP would be double-counting. CHAPTER 2 The Data of Macroeconomics The expenditure components of GDP consumption, C investment, I government spendi