曼昆经济学原理宏观经济学分册英文原版 .pptx
Measuring a Nations IncomeMicroeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets.Macroeconomics is the study of the economy as a whole.Its goal is to explain the economic changes that affect many households,firms,and markets at once.第1页/共264页Measuring a Nations IncomeMacroeconomics answers questions like the following:Why is average income high in some countries and low in others?Why do prices rise rapidly in some time periods while they are more stable in others?Why do production and employment expand in some years and contract in others?第2页/共264页THE ECONOMYS INCOME AND EXPENDITUREWhen judging whether the economy is doing well or poorly,it is natural to look at the total income that everyone in the economy is earning.第3页/共264页THE ECONOMYS INCOME AND EXPENDITUREFor an economy as a whole,income must equal expenditure because:Every transaction has a buyer and a seller.Every dollar of spending by some buyer is a dollar of income for some seller.第4页/共264页Figure 1 The Circular-Flow DiagramSpendingGoods andservicesboughtRevenueGoodsand servicessoldLabor,land,and capitalIncome=Flow of inputs and outputs=Flow of dollarsFactors ofproductionWages,rent,and profit FIRMSProduce and sellgoods and servicesHire and use factorsof production Buy and consumegoods and servicesOwn and sell factorsof productionHOUSEHOLDS Households sellFirms buyMARKETSFORFACTORS OF PRODUCTION Firms sellHouseholds buyMARKETSFORGOODS AND SERVICES第5页/共264页THE MEASUREMENT OF GROSS DOMESTIC PRODUCTGross domestic product(GDP)is a measure of the income and expenditures of an economy.GDP is the total market value of all final goods and services produced within a country in a given period of time.第6页/共264页THE MEASUREMENT OF GROSS DOMESTIC PRODUCTThe equality of income and expenditure can be illustrated with the circular-flow diagram.第7页/共264页THE MEASUREMENT OF GROSS DOMESTIC PRODUCT“GDP is the Market Value.”Output is valued at market prices.“.Of All.”Includes all items produced in the economy and legally sold in markets“.Final.”It records only the value of final goods,not intermediate goods(the value is counted only once).“.Goods and Services.”It includes both tangible goods(food,clothing,cars)and intangible services(haircuts,housecleaning,doctor visits).第8页/共264页THE MEASUREMENT OF GROSS DOMESTIC PRODUCT“.Produced.”It includes goods and services currently produced,not transactions involving goods produced in the past.“.Within a Country.”It measures the value of production within the geographic confines of a country.“.In a Given Period of Time.”It measures the value of production that takes place within a specific interval of time,usually a year or a quarter(three months).第9页/共264页THE COMPONENTS OF GDP GDP includes all items produced in the economy and sold legally in markets.What Is Not Counted in GDP?GDP excludes most items that are produced and consumed at home and that never enter the marketplace.It excludes items produced and sold illicitly,such as illegal drugs.第10页/共264页THE COMPONENTS OF GDPGDP(Y)is the sum of the following:Consumption(C)Investment(I)Government Purchases(G)Net Exports(NX)Y=C+I+G+NX第11页/共264页THE COMPONENTS OF GDPConsumption(C):The spending by households on goods and services,with the exception of purchases of new housing.Investment(I):The spending on capital equipment,inventories,and structures,including new housing.第12页/共264页THE COMPONENTS OF GDPGovernment Purchases(G):The spending on goods and services by local,state,and federal governments.Does not include transfer payments because they are not made in exchange for currently produced goods or services.Net Exports(NX):Exports minus imports.第13页/共264页Table 1 GDP and Its Components第14页/共264页GDP and Its Components(2004)Consumption 70%Government Purchases15%Net Exports-5%Investment16%第15页/共264页REAL VERSUS NOMINAL GDPNominal GDP values the production of goods and services at current prices.Real GDP values the production of goods and services at constant prices.第16页/共264页REAL VERSUS NOMINAL GDPAn accurate view of the economy requires adjusting nominal to real GDP by using the GDP deflator.第17页/共264页Table 2 Real and Nominal GDP第18页/共264页Table 2 Real and Nominal GDP第19页/共264页Table 2 Real and Nominal GDP第20页/共264页The GDP DeflatorThe GDP deflator is a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100.It tells us what portion of the rise in nominal GDP that is attributable to a rise in prices rather than a rise in the quantities produced.第21页/共264页The GDP DeflatorThe GDP deflator is calculated as follows:第22页/共264页The GDP DeflatorNominal GDP is converted to real GDP as follows:第23页/共264页Table 2 Real and Nominal GDP第24页/共264页Figure 2 Real GDP in the United StatesBillions of2000 Dollars$10,0009,0008,0007,0006,0005,0004,0003,000197019751980198519902000199520052,000第25页/共264页IS GDP A GOOD MEASURE OF ECONOMIC WELL-BEING?GDP is the best single measure of the economic well-being of a society.GDP per person tells us the income and expenditure of the average person in the economy.Higher GDP per person indicates a higher standard of living.GDP is not a perfect measure of the happiness or quality of life,however.第26页/共264页GDP AND ECONOMIC WELL-BEINGSome things that contribute to well-being are not included in GDP.The value of leisure.The value of a clean environment.The value of almost all activity that takes place outside of markets,such as the value of the time parents spend with their children and the value of volunteer work.第27页/共264页Table 3 GDP and the Quality of Life 第28页/共264页Because every transaction has a buyer and a seller,the total expenditure in the economy must equal the total income in the economy.Gross domestic product(GDP)measures an economys total expenditure on newly produced goods and services and the total income earned from the production of these goods and services.第29页/共264页GDP is the market value of all final goods and services produced within a country in a given period of time.GDP is divided among four components of expenditure:consumption,investment,government purchases,and net exports.第30页/共264页Nominal GDP uses current prices to value the economys production.Real GDP uses constant base-year prices to value the economys production of goods and services.The GDP deflatorcalculated from the ratio of nominal to real GDPmeasures the level of prices in the economy.第31页/共264页GDP is a good measure of economic well-being because people prefer higher to lower incomes.It is not a perfect measure of well-being because some things,such as leisure time and a clean environment,are not measured by GDP.第32页/共264页Dollar figures from different points in time do not represent a valid comparison of purchasing power.Various laws and private contracts use price indexes to correct for the effects of inflation.The real interest rate equals the nominal interest rate minus the rate of inflation.第33页/共264页 2007 Thomson South-Western第34页/共264页Measuring the Cost of LivingInflation refers to a situation in which the economys overall price level is rising.The inflation rate is the percentage change in the price level from the previous period.第35页/共264页THE CONSUMER PRICE INDEXThe consumer price index(CPI)is a measure of the overall cost of the goods and services bought by a typical consumer.The Bureau of Labor Statistics reports the CPI each month.It is used to monitor changes in the cost of living over time.第36页/共264页THE CONSUMER PRICE INDEXWhen the CPI rises,the typical family has to spend more dollars to maintain the same standard of living.第37页/共264页How the Consumer Price Index Is Calculated1.Fix the basket.Determine what prices are most important to the typical consumer.The Bureau of Labor Statistics(BLS)identifies a market basket of goods and services the typical consumer buys.The BLS conducts monthly consumer surveys to set the weights for the prices of those goods and services.第38页/共264页How the Consumer Price Index Is Calculated2.Find the prices.Find the prices of each of the goods and services in the basket for each point in time.3.Compute the baskets cost.Use the data on prices to calculate the cost of the basket of goods and services at different times.第39页/共264页How the Consumer Price Index Is Calculated4.Choose a base year and compute the index.Designate one year as the base year,making it the benchmark against which other years are compared.Compute the index by dividing the price of the basket in one year by the price in the base year and multiplying by 100.第40页/共264页How the Consumer Price Index Is Calculated5.Compute the inflation rate.The inflation rate is the percentage change in the price index from the preceding period.第41页/共264页How the Consumer Price Index Is CalculatedThe inflation rate is calculated as follows:第42页/共264页Table 1 Calculating the Consumer Price Index and the Inflation Rate:An Example第43页/共264页Table 1 Calculating the Consumer Price Index and the Inflation Rate:An Example第44页/共264页How the Consumer Price Index Is CalculatedCalculating the Consumer Price Index and the Inflation Rate:Another ExampleBase Year is 2002.Basket of goods in 2002 costs$1,200.The same basket in 2004 costs$1,236.CPI=($1,236/$1,200)100=103.Prices increased 3 percent between 2002 and 2004.第45页/共264页FYI:What Is in the CPIs Basket?17%Transportation15%Food and beveragesMedical care6%Recreation6%Apparel4%Other goodsand services4%42%Housing6%Education and communication第46页/共264页Problems in Measuring the Cost of LivingThe CPI is an accurate measure of the selected goods that make up the typical bundle,but it is not a perfect measure of the cost of living.Substitution biasIntroduction of new goodsUnmeasured quality changes第47页/共264页Problems in Measuring the Cost of LivingSubstitution BiasThe basket does not change to reflect consumer reaction to changes in relative prices.Consumers substitute toward goods that have become relatively less expensive.The index overstates the increase in cost of living by not considering consumer substitution.第48页/共264页Problems in Measuring the Cost of LivingIntroduction of New GoodsThe basket does not reflect the change in purchasing power brought on by the introduction of new products.New products result in greater variety,which in turn makes each dollar more valuable.Consumers need fewer dollars to maintain any given standard of living.第49页/共264页Problems in Measuring the Cost of LivingUnmeasured Quality ChangesIf the quality of a good rises from one year to the next,the value of a dollar rises,even if the price of the good stays the same.If the quality of a good falls from one year to the next,the value of a dollar falls,even if the price of the good stays the same.The BLS tries to adjust the price for constant quality,but such differences are hard to measure.第50页/共264页Problems in Measuring the Cost of LivingThe substitution bias,introduction of new goods,and unmeasured quality changes cause the CPI to overstate the true cost of living.The issue is important because many government programs use the CPI to adjust for changes in the overall level of prices.The CPI overstates inflation by about 1 percentage point per year.第51页/共264页The GDP Deflator versus the Consumer Price IndexThe GDP deflator is calculated as follows:第52页/共264页The GDP Deflator versus the Consumer Price IndexThe BLS calculates other prices indexes:The index for different regions within the country.The producer price index,which measures the cost of a basket of goods and services bought by firms rather than consumers.第53页/共264页The GDP Deflator versus the Consumer Price Index Economists and policymakers monitor both the GDP deflator and the consumer price index to gauge how quickly prices are rising.There are two important differences between the indexes that can cause them to diverge.第54页/共264页The GDP Deflator versus the Consumer Price IndexThe GDP deflator reflects the prices of all goods and services produced domestically,whereas.the consumer price index reflects the prices of all goods and services bought by consumers.第55页/共264页The GDP Deflator versus the Consumer Price IndexThe consumer price index compares the price of a fixed basket of goods and services to the price of the basket in the base year(only occasionally does the BLS change the basket).whereas the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the base year.第56页/共264页Figure 2 Two Measures of Inflation1965Percentper Year15CPIGDP deflator105019701975198019851990200019952005第57页/共264页CORRECTING ECONOMIC VARIABLES FOR THE EFFECTS OF INFLATIONPrice indexes are used to correct for the effects of inflation when comparing dollar figures from different times.第58页/共264页Dollar Figures from Different TimesDo the following to convert dollar values from year T into todays dollars:Amount intodays dollarsAmount in year Ts dollarsPrice level todayPrice level in year T=第59页/共264页Dollar Figures from Different TimesDo the following to convert(inflate)Babe Ruths wages in 1931 to dollars in 2005:SalarySalaryPrice level l in 2005Price levee l in 193120051931=$80,.$0001951521,026,316第60页/共264页IndexationWhen some dollar amount is automatically corrected for inflation by law or contract,the amount is said to be indexed for inflation.第61页/共264页Table 2 The Most Popular Movies of All Times,Inflation Adjusted第62页/共264页Real and Nominal Interest RatesInterest represents a payment in the future for a transfer of money in the past.第63页/共264页Real and Nominal Interest RatesThe nominal interest rate is the interest rate usually reported and not corrected for inflation.It is the interest rate that a bank pays.The real interest rate is the interest rate that is corrected for the effects of inflation.第64页/共264页Real and Nominal Interest RatesYou borrowed$1,000 for one year.Nominal interest rate was 15%.During the year inflation was 10%.Real interest rate=Nominal interest rate Inflation=15%10%=5%第65页/共264页Figure 3 Real and Nominal Interest Rates1965Interest Rates(percentper year)15%Real interest rate1050519701975198019851990199520002005Nominal interest rate第66页/共264页The consumer price index shows the cost of a basket of goods and services relative to the cost of the same basket in the base year.The index is used to measure the overall level of prices in the economy.The percentage change in the CPI measures the inflation rate.第67页/共264页The consumer price index is an imperfect measure of the cost of living for the following three reasons:substitution bias,the introduction of new goods,and unmeasured changes in quality.Because of measurement problems,the CPI overstates annual inflation by about 1 percentage point.第68页/共264页The GDP deflator differs from the CPI because it includes goods and services produced rather than goods and services consumed.In addition,the CPI uses a fixed basket of goods,while the GDP deflator automatically changes the group of goods and services over time as the composition of GDP changes
