Содержание
- 2. Lecture objectives How is GDP measured? What are other measures of macroeconomic activity? Can GDP be
- 3. GDP and other metrics of macroeconomic activity nominal GDP vs. real GDP GNP NNP NI
- 4. Gross domestic product (GDP) GDP is the market value of the final goods and services produced
- 5. Real GDP vs. nominal GDP Real GDP is the value of final goods and services produced
- 6. Real GDP vs. nominal GDP: example
- 7. The virtue of real GDP By comparing the value of production in the two years at
- 8. Gross national product (GNP) GNP is the market value of the final goods and services produced
- 9. GDP vs. GNP GDP notion is based on the LOCATION of inputs. GNP notion is based
- 10. Check point: test your understanding Is nominal GDP always bigger than real GDP? Is GNP always
- 11. Net National Product (NNP) NNP = GNP – depreciation Depreciation is the estimate of the amount
- 12. National income (NI) NI = NNP – indirect taxes Indirect taxes are subtracted because they have
- 13. How is GDP really measured? Circular flow model
- 14. Four groups of economic subjects Domestic households Domestic firms Domestic government Foreign sector
- 15. Two-factor circular flow model
- 16. GDP: three measurement methods Although GDP is called „product”, we can measure it in three ways:
- 17. Complete circular flow model
- 18. GDP account: important rules Each method avoids double-counting Production method is based on net values Expenditure
- 19. Double-counting: examples Second-hand goods Intermediate goods vs. final goods Gross value of production vs. net value
- 20. Important vocabulary Intermediate goods: goods used in the production of other goods. Final goods: goods that
- 21. Check point: true / false test When you buy used car, the transaction is included in
- 22. Check point: true / false test (cont.) Spending on new houses represent the only one type
- 23. Can GDP be a proxy for the welfare?
- 24. GDP per capita GDP per capita = the gross income received by the average resident of
- 25. PPP GDP per capita PPP GDP per capita: GDP per capita presented on a purchasing power
- 26. PPP GDP per capita across the world
- 27. Further reading (World Bank site) http://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD/countries/1W?order=wbapi_data_value_2012%20wbapi_data_value%20wbapi_data_value-last&sort=desc&display=default
- 28. What IS under control in PPP GDP per capita measurement Differences in currencies among countries Differences
- 29. What IS NOT under control in PPP GDP per capita measurement Division of income in the
- 30. How can welfare (economic well-being) be measured? Net Economic Welfare (NEW) designed by W. Nordhaus and
- 31. Is hapiness economic issue? The question „Can money buy hapinness?” was the subject of the scientific
- 32. Is hapiness economic issue? (cont.) Some interesting observations: despite substantial increase in GDP per capita, the
- 33. Lecture objectives How is GDP measured? What are other measures of macroeconomic activity? Can GDP be
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