第02章 节 the science of macroeconomics.ppt

MACROECONOMICS
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S E V E N T H E D I T I O N
PowerPoint® Slides by Ron Cronovich
N. Gregory Mankiw
C H A P T E R
The Science of Macroeconomics
2
Modified for EC 204
by Bob Murphy
In this chapter, you will learn:
…the meaning and measurement of the most important macroeconomic statistics:
Gross Domestic Product (GDP)
The Consumer Price Index (CPI)
The Unemployment Rate
CHAPTER 2 The Data of Macroeconomics
Gross Domestic Product:  Expenditure and e
Two definitions:
Total expenditure on domestically-produced final goods and services.
Total e earned by domestically-located factors of production.
Expenditure equals e because every dollar spent by a buyer es e to the seller.
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CHAPTER 2 The Data of Macroeconomics
The Circular Flow
Households
Firms
Goods
Labor
Expenditure ($)
e ($)
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CHAPTER 2 The Data of Macroeconomics
CHAPTER 2 The Data of Macroeconomics
Gross Domestic Product: Expenditure and e
One caveat:
Measurement of e and expenditure is imperfect.
Difference in GDP and Gross Domestic e GDI) is called the “Statistical Discrepancy.”
See Supplement 2-1
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CHAPTER 2 The Data of Macroeconomics
Final goods, value added, and GDP
GDP = value of final goods produced
= sum of value added at all stages of production.
The value of the final goods already includes the value of the intermediate goods, so including intermediate and final goods in GDP would be double-counting.
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CHAPTER 2 The Data of Macroeconomics
The ponents of GDP
consumption, C
investment, I
government spending, exports, NX
An important identity:
Y = C + I + G + NX
aggregate expenditure
value of total output
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CHAPTER 2 The Data of Macroeconomics
Consumption (C)
durable goods last a long time ., cars, home appliances
nondurable goodslast a short time ., food, clothing
serviceswork done for consumers ., dry cleaning, air travel
definition: The value of all goods and services bought by households. In