第五版宏观经济学习题答案(英文)..doc

WHAT’S NEW IN THE FIFTH EDITION: There is more clarification on the GDP deflator. The Case Study on “Who Wins at the Olympics?” is now an FYI box. LEARNING OBJECTIVES: By the end of this chapter, students should understand: ? why an economy’s total income equals its total expenditure. ? how gross domestic product (GDP) is defined and calculated. ? the breakdown of GDP into its four major components. ? the distinction between real GDP and nominal GDP. ? whether GDP is a good measure of economic well-being. CONTEXT AND PURPOSE: Chapter 23 is the first chapter in the macroeconomic section of the text. It is the first of a two-chapter sequence that introduces students to two vital statistics that economists use to monitor the macroeconomy—GDP and the consumer price index. Chapter 10 develops how economists measure production and income in the macroeconomy. The following chapter, Chapter 11, develops how economists measure the level of prices in the macroeconomy. Taken together, Chapter 10 concentrates on the quantity of output in the macroeconomy while Chapter 11 concentrates on the price of output in the macroeconomy. The purpose of this chapter is to provide students with an understanding of the measurement and the use of gross domestic product (GDP). GDP is the single most important measure of the health of the macroeconomy. Indeed, it is the most widely reported statistic in every developed economy. KEY POINTS: ? Because every transaction has a buyer and a seller, the total expenditure in the economy must equal the total income in the economy. ? Gross domestic product (GDP) measures an economy’s total expenditure on newly produced goods and services and the total income earned from the production of these goods and services. More precisely, GDP is the market value of all final goods and services produced within a country in a given period of time. ? GDP is divided among four components of expenditure: consumption, inve