曼昆宏观经济学第七版讲义2.pptVIP

* * source: World Development Indicators, World Bank. /data-catalog How to interpret the numbers in this table: In Japan, GNP is 2.6% bigger than GDP. This means that the income earned by all Japanese citizens is 2.6% larger than the value of production occurring within Japan’s borders. In Greece, GNP is 4.1% smaller than GDP. This means that 4.1% of all the income generated in Greece is taken away and paid to foreigners. In Ireland, 19.4% of the value of domestic production is paid to foreigners. Teaching suggestion: Point out a few countries with positive numbers. Ask your students to take a moment to think of possible reasons why GNP might exceed GDP in a country, and write them down. Point out a few countries with negative numbers. Ask your students to take a moment to think of possible reasons why a country’s GDP might be bigger than its GNP, and write them down. After students have had a chance to think of some reasons, ask for volunteers. Better yet, have them pair up and compare answers with a classmate before volunteering their answers to the class. Reasons why GNP may exceed GDP: Country has done a lot of lending or investment overseas and is earning lots of income from these foreign investments income on nationally-owned capital located abroad . A significant number of citizens have left the country to work overseas; their income is counted in GNP, not GDP. Reasons why GDP may exceed GNP: Country has done a lot of borrowing from abroad, or foreigners have done a lot of investment in the country income earned by foreign-owned domestically-located capital . This is most likely why Mexico’s GDP GNP. Country has a large immigrant labor force If one of your students asks a question like “Why is the figure for country X so negative?” or otherwise inquires into the particular circumstances of a country’s figure, you may refer them to the CIA World Factbook for more details on any of these countries. * * This problem requires c