经济学导论7 8 9.pptVIP

National Income (NI) P148 The NI of a country is a measure of the goods and services produced in the country over period of a year Wealth (money value) created by production National income can be measured in three approaches National Output National Expenditure National Income Calculation of National Income (p149) Three Approaches Mary spends a final good $10, the market value is $10, the income to the factors is $10 National Expenditure =National Output = National Income 1. Expenditure approach 2. Output approach 3. Income approach The Economy’s Income and Expenditure (p153) For an economy as a whole, income must equal expenditure. A measure of the income and expenditures of an economy is Gross Domestic Product (GDP). Gross Domestic Product What Is and What Is Not Counted in GDP? GDP includes all items produced in the economy and sold legally in markets. GDP does NOT include items produced and consumed at home that never enter the marketplace. It does NOT include items produced and sold illicitly, such as illegal drugs. The Components of GDP (p188-189) GDP (Y ) is the sum of the following: Consumption (C) Investment (I) Government Purchases (G) Net Exports (NX) Y = C + I + G + NX Y = C + I + G + X - M GDP Components GDP and Its Components (USA) Components of GDP, 1999:The Expenditure Approach US GDP ($ billions, nominal) China’s GDP by category of expenditure, 2007 Gross National Product National Income GNP less: Consumption of Fixed Capital (depreciation) = Net National Product less: Indirect Business Tax less: Business Transfer Payments less: Statistical Discrepancy plus: Subsidies less current surplus of government = National Income 　To keep things simple we will always assume GDP=GNP=National Income (unless otherwise stated). UK GDP by category of expenditure, GNY and NNY: 2000 Difficulties in Measuring National Income(p162-163) Non-marketed production (products and services Housework, voluntary activities, do-it-yourself proj