1.2 Consumption(C) def:the value of all goods ·durable goods and services bought by last a long time households.Includes: ex:cars,home appliances non-durable goods last a short time ex:food,clothing services work done for consumers ex:dry cleaning, air travel. CHAPTER 2 The Data of Macroeconomics slide 10
CHAPTER 2 The Data of Macroeconomics slide 10 Consumption (C) • durable goods last a long time ex: cars, home appliances • non-durable goods last a short time ex: food, clothing • services work done for consumers ex: dry cleaning, air travel. def: the value of all goods and services bought by households. Includes: 1.2
1.2 Investment(⑩ def1:spending on [the factor of production]capital. def2:spending on goods bought for future use.Includes: business fixed investment spending on plant and equipment that firms will use to produce other goods services residential fixed investment spending on housing units by consumers and landlords inventory investment the change in the value of all firms'inventories CHAPTER 2 The Data of Macroeconomics slide 11
CHAPTER 2 The Data of Macroeconomics slide 11 Investment (I) def1: spending on [the factor of production] capital. def2: spending on goods bought for future use. Includes: ▪ business fixed investment spending on plant and equipment that firms will use to produce other goods & services ▪ residential fixed investment spending on housing units by consumers and landlords ▪ inventory investment the change in the value of all firms’ inventories 1.2
1.2 Government spending (G) G includes all government spending on goods and services. -G excludes transfer payments (e.g.unemployment insurance payments), because they do not represent spending on goods and services. CHAPTER 2 The Data of Macroeconomics slide 12
CHAPTER 2 The Data of Macroeconomics slide 12 Government spending (G) ▪ G includes all government spending on goods and services. ▪ G excludes transfer payments (e.g. unemployment insurance payments), because they do not represent spending on goods and services. 1.2
1.2 Net exports (NX EX-IM) def:the value of total exports (EX) minus the value of total imports (IM) s.KtP瓶，1022P -1p90 -1590 -2290 -290 -3990 3590 4990 1999019955193%193519980199519990199552990 CHAPTER 2 The Data of Macroeconomics slide 13
CHAPTER 2 The Data of Macroeconomics slide 13 Net exports (NX = EX - IM) def: the value of total exports (EX) minus the value of total imports (IM) U.S. Net Exports, 1960-2000 -400 -350 -300 -250 -200 -150 -100 -50 0 50 1960 1965 1970 1975 1980 1985 1990 1995 2000 $ billions 1.2
1.2 An important identity Y-C+I+G+NX where Y=GDP=the value of total output C+I+G+NX aggregate expenditure Return CHAPTER 2 The Data of Macroeconomics slide 14
CHAPTER 2 The Data of Macroeconomics slide 14 An important identity Y = C + I + G + NX where Y = GDP = the value of total output C + I + G + NX = aggregate expenditure 1.2 Return