Chapter 2:The Major Macroeconomic ariables 2-1: Aggregate Output 2-2: The other Major Macroeconomic Variables 2003-6-22
2003-6-22 1 Chapter 2:The Major Macroeconomic Variables 2-1:Aggregate Output 2-2:The Other Major Macroeconomic Variables
2-1HAggregate Output GDP Value Added and Income o nominal and real dp 2003-6-22
2003-6-22 2 2-1:Aggregate Output GDP,Value Added,and Income Nominal and Real GDP
GDPVValue Added and Income e There are three ways of thinking about an economys GDP 1. GDP is the value of the final goods and Services Produced in the Economy During a Given Period 2003-6-22 3
2003-6-22 3 GDP,Value Added,and Income There are three ways of thinking about an economy’s GDP 1.GDP is the value of the Final Goods and Services Produced in the Economy During a Given Period
Steel company Revenues from sales $100 Expenses(wages) $80 Profit $20 Car company Revenues from sales $210 EXpenses $170 Wages $70 Steel purchases $100 Profit $40 2003-6-22
2003-6-22 4 Steel company Revenues from sales $100 Expenses(wages) $80 Profit $20 Car company Revenues from sales $210 Expenses $170 wages $70 Steel purchases $100 Profit $40
GDPVValue Added and Income 2, GDP is the Sum of value added in the Economy During a Given Period 2003-6-22 5
2003-6-22 5 GDP,Value Added,and Income 2.GDP is the Sum of Value Added in the Economy During a Given Period