宏观经济学lecture1.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * What GNP does doesn’t measure Some care is needed: to distinguish between real and nominal measurements to take account of population changes to remember that GNP is not a comprehensive measure of everything that contributes to economic welfare GNP Deflator The GNP deflator is the ratio of nominal GNP to real GNP, expressed as an index. 1960 1995 2008 Nominal GNP (Current ￡bn) 25 750 1471 GNP deflator (1995=100) 8 100 141 Real GNP (￡bn 1995 prices) 316 750 1043 The distinction between nominal and real GNP ?McGraw-Hill Education, 2014 Per capita GDP growth in the UK and China ?McGraw-Hill Education, 2014 Annual growth of real GDP, per capita real GDP and population between 2000-12 (% per annum) ?McGraw-Hill Education, 2014 Tax evasion The hidden economy is often linked to tax evasion. Taxes are evaded by smugglers and drug dealers but also by gardeners, plumbers and everyone else doing things ‘for cash’. Since GNP data are based on tax statistics, the ‘hidden’ economy is unreported. This means that official GNP statistics may substantially understate the true value of GNP. Estimating the size of the hidden economy is obviously difficult. Tax evasion and the hidden economy ?McGraw-Hill Education, 2014 ? dg171@le.ac.uk Page * Problems in Calculating National Income In principle, it would seem straight-forward to calculate national income. However, there are three main complications: Depreciation: Over time, firms’ capital stock (i.e. machinery) loses value. This lost value must be accounted for. GNP - depreciation = Net National Product (NNP) Prices: The expenditure method uses the market prices paid for goods and services, which is net of indirect taxes (like VAT) and subsidies. The other methods use factor costs, which are exclusive of taxes and subsidies. Therefore, GNE must be adjusted as follows: GNE (fact