macro_notes 宏观经济.doc

Overview of macroeconomics – study of the relationship between aggregate economic variables Goals stable rate of economic growth high employment and low unemployment stable prices variables measures output real GDP – use constant price nominal GDP – use current price prices GDP price deflator Consumer price index Producer price index Unemployment monetary policy – money supply interest rates balance of payments flow between countries current account – import/export exchange rate business cycles policy tools fiscal policy – changes in government spending, taxes monetary policy – changes in money supply and interest rates federal reserve system bureau of economic analysis – dept of commerce GDP, price deflator, international trade Quarterly Bureau of labor statistics debt of labor unemployment rate consumer price index, PPI, monthly snapshots of the U.S. economy gross domestic product – the market value of all final goods and services produced within a country’s borders in a year issues in calculating GDP final goods and services excluding intermediate goods – produced by one firms and used as input in another firm avoids double counting use value added approach market value – use prices as a common measuring stick values of goods at cost if no market price exist non market transactions are excluded value of goods and services produced inside household for use by the home illegal markets aka underground economy nonproductive transactions are excluded government transfer payments private transfer payments (gifts) purchase of securities – stocks and bonds 2nd hand goods are excluded Goods not sold are included in GDP as inventory (changes ways of measuring GDP – circular flow model (real GDP yr 2 – GDP yr 1) divided by GDP yr 1 GDP price deflator – nominal GDP divided by real GDP Problems of real GDP recalculations, bias, overestimation of real GDP, underestimation of inflation goods and services Resources GDP can be measured as value of final output, aggrega