Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 5 Measurement of National Income - Coggle Diagram
Chapter 5 Measurement of National Income
GDP definition
the market value(产量×价格) of all the final
goods and service produced within a country in a given period of time
exclude
depreciation
households, slef-made, underground
intermediate goods
financial transaction
second hand
import
out of the given time
Methods of measuring GDP
Output Measure
PxQ
Income Approach
Y = Wage + Net interest + Rent + Profit + Proprietors’ income+ Tax
Expenditure Approach
G
purchased by govt.
Transfer payments x
C
total spending by households on g&s
NX
exports – imports
I
capital, inventory, house
financial asset x
National Output = National Income = National Expenditure
Real versus Nominal GDP
Nominal GDP: using current prices
real GDP: using the prices of a base year
Limitation
doesn’t measure non-market activity
不能衡量国家间收入的公平分配
不能衡量财富
Does not thoroughly reflect utility
GNP
国民原则
GNP=GDP + Factor Payments from Abroad – Factor Payments to Abroad
