Intermediate Macroeconomics Lecture 2
Intermediate Macroeconomics Lecture 2
>8 The Data of Macroeconomics t Measure of economic activity Gross Domestic Product(GDP) Total expenditure on domestically-produced final goods and services Total income earned by domestically-located factors of production
The Data of Macroeconomics Measure of economic activity Gross Domestic Product (GDP) Total expenditure on domestically-produced final goods and services Total income earned by domestically-located factors of production
>8 The Data of Macroeconomics Calculation of gDP ) Final goods(no intermediate goods, value added) x 2) Domestically produced x *Gross National Product (GNP Total income earned by the nation's factors of production, regardless of where located 3)Used goods(not included) t 4) Inventories sold GDP: go bad lose value
The Data of Macroeconomics Calculation of GDP 1) Final goods (no intermediate goods; value added) 2) Domestically produced *Gross National Product (GNP) Total income earned by the nation’s factors of production, regardless of where located 3) Used goods (not included) 4) Inventories sold → GDP; go bad → lose value
GNP VS GDP GNP V S. GDP 100000 80000 亿元60000 40000 20000 19781981198419871990199319961999 GNP ear U GDP
GNP v.s. GDP 0 20000 40000 60000 80000 100000 亿元 1978 1981 1984 1987 1990 1993 1996 1999 Year GNP v.s. GDP GNP GDP
>8 The Data of Macroeconomics x Nominal v.s. Real gDP current year price or base year's price N omina ∑f4xQ 04 Rea=∑oxQo4 gdP deflator nominal GDP/real GDP
The Data of Macroeconomics Nominal v.s. Real GDP current year price or base year’s price Nominal = Real = GDP deflator = nominal GDP/real GDP P Q 04 04 P Q 90 04