曼昆宏观经济学最新版ch03.pptxVIP

3National Income: Where It Comes From and Where It GoesIN THIS CHAPTER, YOU WILL LEARN:what determines the economy’s total output/incomehow the prices of the factors of production are determinedhow total income is distributedwhat determines the demand for goods and serviceshow equilibrium in the goods market is achievedOutline of modelA closed economy, market-clearing modelSupply sidefactor markets (supply, demand, price)determination of output/incomeDemand sidedeterminants of C, I, and GEquilibriumgoods marketloanable funds marketFactors of productionK = capital: tools, machines, and structures used in productionL = labor: the physical and mental efforts of workersThe production function: Y = F(K,L)shows how much output (Y ) the economy can produce fromK units of capital and L units of labor reflects the economy’s level of technology exhibits constant returns to scaleReturns to scale: a reviewInitiallyY1 = F (K1 , L1 ) Scale all inputs by the same factor z: K2 = zK1and L2 = zL1 (e.g., if z = 1.2, then all inputs are increased by 20%)What happens to output, Y2 = F (K2, L2 )? If constant returns to scale, Y2 = zY1 If increasing returns to scale, Y2 zY1 If decreasing returns to scale, Y2 zY1 Returns to scale: Example 1constant returns to scale for any z 0Returns to scale: Example 2decreasing returns to scale for any z 1Returns to scale: Example 3increasing returns to scale for any z 1NOW YOU TRYReturns to scaleDetermine whether each of these production functions has constant, decreasing, or increasing returns to scale: (a) (b)ANSWERSReturns to scale, part (a)constant returns to scale for any z 0ANSWERSReturns to scale, part (b)constant returns to scale for any z 0AssumptionsTechnology is fixed.The economy’s supplies of capital and labor are fixed atDetermining GDPOutput is determined by the fixed factor supplies and the fixed state of technology:The distribution of national incomedetermined by factor prices, the prices per unit firms pay for