CHAP003National Income Where It Comes From and Where It Goes(宏观经济学-曼昆,英文版).pdf

Chapter 3 National Income: Where It Comes From and Where It Goes  What determines the total production of gods and services?  How us national income distributed to the factors of production  What determines the demand for goods and services?  What brings the supply and demand for goods and services into equilibrium?  Conclusion Slide 1 Mankiw:Macroeconomics, 4/e © by Worth Publishers, Inc. 3-1 What determines the total production of goods and services  The factors of  The supply of goods production: L, K and services  The production function:  Y = F (K’, L’ ) = Y’ Y=F(K,L)  Constant returns to scale: z Y=F (z K, z L) 3-2 How is national income distributed to the factors of production?  Factors prices :the wage workers earn and the rent the owners of capital collect. Slide 2 Mankiw:Macroeconomics, 4/e © by Worth Publishers, Inc. The decisions facing the competitive firm  The goal of the firm is to maximize profit.  Profit=Revenue – Labor cost – Capital cost = PY – WL – RK = PF(K,L) – WL – RK The firm’s demand for factors  The marginal product of labor (the law of diminishing)  MPL=F(K,L+1) – F(K,L)  From the marginal product of labor to labor demand Real wage: MPL = W/P  MPK=R/P  The firm demands each factor of production until that factor’s marginal product falls to equal its real factor price. Slide 3 Mankiw:Macroeconomics, 4/e © by Worth Publishers, Inc. Slide 4 Mankiw:Macroeconomics, 4/e ©