《宏观经济学教学课件》Chapter_02.pptVIP

Introduction Why do we study the national income accounts? National income accounting provides structure for our macroeconomic theory models Introduces statistics that characterize the economy Output defined in two ways Production side: output = payments to workers in wages, capital in interest and dividends Demand side: output = purchases by different sectors of the economy ? as per accounting, output measured via demand and production equal in equilibrium Output typically measured as GDP = value of all final goods and services produced within a country over a particular period of time. Production Side of the Economy The production side of the economy transforms inputs (labor, capital) into output (GDP) Inputs referred to as factors of production Payments to these factors are referred to as factor payments The relationship between inputs and outputs is defined by the production function ? (1) where Y = output, N = labor, K = capital “Output is a function of labor and capital,” where the functional form can be defined in various ways The production function is crucial to the discussion of growth theory in chapters 3 and 4 From GDP to National Income Use the terms output and income interchangeably in macroeconomics, but are they really equivalent? There are a few crucial distinctions between them: Capital wears down over time while it is being used in the production process ? Net domestic product = GDP – depreciation NDP is the total value of production minus the value of the amount of capital used up in producing that output NDP is usually 89% of GDP Businesses pay indirect taxes (i.e. taxes on sales, property, and production) that must be subtracted from NDP before making factor payments ? National Income = NDP – indirect business taxes Indirect business taxes account for nearly 10% of NDP National income is roughly 80% of GDP Components of Demand Total demand for domestic output is made up of four components: Consumption spending by hous