Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 23: Measuring a Nation’s Income, For the economy as a whole,…
Chapter 23: Measuring a Nation’s Income
GDP - Gross Domestic Product
measures total income of everyone in the economy.
GDP is
g&s must have
production costs
and
revenue
-Monetary: measured in
dollars
Things that
don’t have a market value
are
excluded
can't add in GDP, GDP is only measured for
market
is the market value of all
final
g&s
for the end user
Intermediate goods
components ( phụ kiện, linh kiện)
ingredients (hợp chất, nguyên liệu)
GDP includes
tangible goods
(like DVDs, mountain bikes, beer)
and
intangible services
(concerts, cell phone service)
GDP
not
include goods produced in the
past
.
occurs within a country’s borders
include by foreigners
Usually a year or a quarter (3 months)
…the market value of all final goods & services produced within a country in a given period of time.
4 Components of GDP
GDP is total spending
Y = C + I + G + NX
Consumption (C)
Total spending
by
households
on g&s.
Investment (I)
is spending on goods for future production
capital equipment (machines, tools)
structures (factories, office buildings, houses)
inventories (goods produced but not yet sold)
Government Purchases (G)
All spending on the g&s purchased
by govt
G
excludes
(ko tính) Social Security and unemployment insurance benefits.
Net Exports (NX)
NX=exports – imports
Y: total Components
Inflation ↑→( C I G NX)↓
Nominal GDP
uses current prices and is
not adjusted for inflation.
Compute: năm nào nhân giá năm đó
Real GDP
Real GDP uses
a base year
prices and is
adjusted for inflation
.
Compute: nhân giá năm cơ sở
% thay đổi: (năm nay - năm trc)/năm trc * 100
tăng ở mức trung bình giảm/tăng
GDP deflator = 100 * Nominal GDP / Real GDP
For the economy as a whole,
income
=
expenditure
(The Circular-Flow Diagram)
3 factors don't have in this diagram
(lean in other chapter)
The government
collects taxes, buys g&s
(goods and service )
The financial system
matches savers’ supply of funds with borrowers’ demand for loans
The foreign sector
trades g&s, financial assets, and currencies with the country’s residents