教学课件宏观英文2.pptVIP

Chapter 2 National Income Accounting 2.1 ECONOMY’S INCOME AND EXPENDITURE For an economy as a whole, income must equal expenditure because: Every transaction has a buyer and a seller. Every dollar of spending by some buyer is a dollar of income for some seller. 2.2 GROSS DOMESTIC PRODUCT Gross domestic product (GDP) is a measure of the income and expenditures of an economy. It is the total market value of all final goods and services produced within a country in a given period of time. THE COMPONENTS OF GDP What Is Not Counted in GDP? GDP excludes most items that are produced and consumed at home and that never enter the marketplace. It excludes items produced and sold illicitly, such as illegal drugs. THE COMPONENTS OF GDP GDP (Y) is the sum of the following: Consumption (C) Investment (I) Government Purchases (G) Net Exports (NX) Y = C + I + G + NX where  Y = GDP = the value of total output C + I + G + NX = aggregate expenditure THE COMPONENTS OF GDP(1) Consumption (C): The spending by households on goods and services, with the exception of purchases of new housing. durable goods last a long time ex: cars, home appliances non-durable goods last a short time ex: food, clothing serviceswork done for consumers ex: dry cleaning, air travel. THE COMPONENTS OF GDP(2) Investment (I): The spending on capital equipment, inventories, and structures, including new housing. Includes: business fixed investmentspending on plant and equipment that firms will use to produce other goods & services residential fixed investmentspending on housing units by consumers and landlords inventory investment the change in the value of all firms’ inventories Net vs. Gross Investment Net investment is positive when the nation is producing more capital goods than are currently being used up in the form of depreciation. Since depreciation is hard to estimate accurately, statisticians have more confidence in their measures of gross investment than in those of net i