曼昆《經(jīng)濟學原理》(宏觀經(jīng)濟學分冊)英文原版課件 23

1、 2007 Thomson South-WesternMeasuring 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

2、 households, firms, and markets at once.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

3、 expand in some years and contract in others? 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.THE ECONOMYS INCOME AND EXPENDITUREFor an economy as a whole, income must equal

4、 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. Figure 1 The Circular-Flow DiagramSpendingGoods andservicesboughtRevenueGoodsand servicessoldLabor, land,and capitalIncome = Flow of inputs and outputs = Flow

5、 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

6、AND SERVICESTHE 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.THE MEASUREMENT OF GROSS DOMESTIC PRODUCTThe

7、equality of income and expenditure can be illustrated with the circular-flow diagram.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 r

8、ecords 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). THE MEASUREMENT OF GROSS DOMESTIC PRODUCT“. . . Produc

9、ed . . .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 ta

10、kes place within a specific interval of time, usually a year or a quarter (three months). 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 th

11、e marketplace.It excludes items produced and sold illicitly, such as illegal drugs.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 + NXTHE COMPONENTS OF GDPConsumption (C):The spending by households on goo

12、ds and services, with the exception of purchases of new housing.Investment (I):The spending on capital equipment, inventories, and structures, including new housing.THE COMPONENTS OF GDPGovernment Purchases (G):The spending on goods and services by local, state, and federal governments.Does not incl

13、ude transfer payments because they are not made in exchange for currently produced goods or services.Net Exports (NX):Exports minus imports.Table 1 GDP and Its ComponentsGDP and Its Components (2004)Consumption 70%Government Purchases15%Net Exports -5 %Investment16%REAL VERSUS NOMINAL GDPNominal GDP

14、 values the production of goods and services at current prices.Real GDP values the production of goods and services at constant prices. REAL VERSUS NOMINAL GDPAn accurate view of the economy requires adjusting nominal to real GDP by using the GDP deflator.Table 2 Real and Nominal GDPTable 2 Real and

15、 Nominal GDPTable 2 Real and Nominal GDPThe 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 prod

16、uced. The GDP DeflatorThe GDP deflator is calculated as follows:The GDP DeflatorNominal GDP is converted to real GDP as follows:Table 2 Real and Nominal GDPFigure 2 Real GDP in the United StatesBillions of2000 Dollars$10,0009,0008,0007,0006,0005,0004,0003,000197019751980198519902000199520052,000IS G

17、DP 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 ha

18、ppiness or quality of life, however.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 wit

19、h their children and the value of volunteer work.Table 3 GDP and the Quality of Life 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 produc

20、ed goods and services and the total income earned from the production of these goods and services.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 purch

21、ases, and net exports.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.GDP is a

22、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.Dollar figures from different points in time do not represent a valid comparison of p

23、urchasing 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. 2007 Thomson South-WesternMeasuring the Cost of LivingInflation refers to a situation in which the economy

24、s overall price level is rising.The inflation rate is the percentage change in the price level from the previous period.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 repor

25、ts the CPI each month.It is used to monitor changes in the cost of living over time.THE CONSUMER PRICE INDEXWhen the CPI rises, the typical family has to spend more dollars to maintain the same standard of living.How the Consumer Price Index Is Calculated1. Fix the basket. Determine what prices are

26、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.How the Consumer Price Index Is Calculated2.

27、 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.How the Consumer Price Index Is Calculated4. Choose a base year an

28、d 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. How the Consumer Price Index Is Calculated5. Compute the i

29、nflation rate. The inflation rate is the percentage change in the price index from the preceding period.How the Consumer Price Index Is CalculatedThe inflation rate is calculated as follows:Table 1 Calculating the Consumer Price Index and the Inflation Rate: An ExampleTable 1 Calculating the Consume

30、r Price Index and the Inflation Rate: An ExampleHow 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 inc

31、reased 3 percent between 2002 and 2004.FYI: What Is in the CPIs Basket?17%Transportation15%Food and beveragesMedical care6%Recreation6%Apparel4%Other goodsand services4%42%Housing6%Education and communicationProblems in Measuring the Cost of LivingThe CPI is an accurate measure of the selected goods

32、 that make up the typical bundle, but it is not a perfect measure of the cost of living.Substitution biasIntroduction of new goodsUnmeasured quality changesProblems in Measuring the Cost of LivingSubstitution BiasThe basket does not change to reflect consumer reaction to changes in relative prices.C

33、onsumers substitute toward goods that have become relatively less expensive.The index overstates the increase in cost of living by not considering consumer substitution.Problems in Measuring the Cost of LivingIntroduction of New GoodsThe basket does not reflect the change in purchasing power brought

34、 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.Problems in Measuring the Cost of LivingUnmeasured Quality ChangesIf the quality of a good rises from on

35、e 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 differenc

36、es are hard to measure.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

37、level of prices.The CPI overstates inflation by about 1 percentage point per year. The GDP Deflator versus the Consumer Price IndexThe GDP deflator is calculated as follows:The GDP Deflator versus the Consumer Price IndexThe BLS calculates other prices indexes: The index for different regions within

38、 the country.The producer price index, which measures the cost of a basket of goods and services bought by firms rather than consumers. 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

39、are rising.There are two important differences between the indexes that can cause them to diverge.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 an

40、d services bought by consumers.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 pric

41、e of currently produced goods and services to the price of the same goods and services in the base year.Figure 2 Two Measures of Inflation1965Percentper Year15CPIGDP deflator105019701975198019851990200019952005CORRECTING ECONOMIC VARIABLES FOR THE EFFECTS OF INFLATIONPrice indexes are used to correc

42、t for the effects of inflation when comparing dollar figures from different times.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=Dollar Figures from Di

43、fferent TimesDo the following to convert (inflate) Babe Ruths wages in 1931 to dollars in 2005:SalarySalaryPrice levell in 2005Price leveel in 193120051931=$80,.$0001951521,026,316IndexationWhen some dollar amount is automatically corrected for inflation by law or contract, the amount is said to be

44、indexed for inflation.Table 2 The Most Popular Movies of All Times, Inflation AdjustedReal and Nominal Interest RatesInterest represents a payment in the future for a transfer of money in the past.Real and Nominal Interest RatesThe nominal interest rate is the interest rate usually reported and not

45、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.Real and Nominal Interest RatesYou borrowed $1,000 for one year.Nominal interest rate was 15%. During the year inflation was 10%.Real interest

46、rate = Nominal interest rate Inflation= 15% 10% = 5%Figure 3 Real and Nominal Interest Rates1965Interest Rates(percentper year)15%Real interest rate1050519701975198019851990199520002005Nominal interest rateThe consumer price index shows the cost of a basket of goods and services relative to the cost

47、 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.The consumer price index is an imperfect measure of the cost of living for the following three reasons: substitution bias, the int

48、roduction of new goods, and unmeasured changes in quality.Because of measurement problems, the CPI overstates annual inflation by about 1 percentage point. The GDP deflator differs from the CPI because it includes goods and services produced rather than goods and services consumed.In addition, the C

49、PI 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.Dollar figures from different points in time do not represent a valid comparison of purchasing power.Various laws and private contracts use price

50、indexes to correct for the effects of inflation.The real interest rate equals the nominal interest rate minus the rate of inflation. 2007 Thomson South-WesternSaving, Investment, and the Financial SystemThe financial system consists of the group of institutions in the economy that help to match one

51、persons saving with another persons investment.It moves the economys scarce resources from savers to borrowers.FINANCIAL INSTITUTIONS IN THE U.S. ECONOMYThe financial system is made up of financial institutions that coordinate the actions of savers and borrowers.Financial institutions can be grouped

52、 into two different categories: Financial marketsFinancial intermediariesFINANCIAL INSTITUTIONS IN THE U.S. ECONOMYFinancial MarketsStock MarketBond MarketFinancial IntermediariesBanksMutual FundsFINANCIAL INSTITUTIONS IN THE U.S. ECONOMYFinancial markets are the institutions through which savers ca

53、n directly provide funds to borrowers.Financial intermediaries are financial institutions through which savers can indirectly provide funds to borrowers.Financial MarketsThe Bond MarketA bond is a certificate of indebtedness that specifies obligations of the borrower to the holder of the bond.Charac

54、teristics of a BondTerm: The length of time until the bond matures.Credit Risk: The probability that the borrower will fail to pay some of the interest or principal.Tax Treatment: The way in which the tax laws treat the interest on the bond.Municipal bonds are federal tax exempt.Financial Markets Th

55、e Stock MarketStock represents a claim to partial ownership in a firm and is therefore, a claim to the profits that the firm makes.The sale of stock to raise money is called equity financing.Compared to bonds, stocks offer both higher risk and potentially higher returns.The most important stock exch

56、anges in the United States are the New York Stock Exchange, the American Stock Exchange, and NASDAQ.Financial Markets The Stock MarketMost newspaper stock tables provide the following information:Price (of a share)Volume (number of shares sold)Dividend (profits paid to stockholders)Price-earnings ra

57、tioFinancial IntermediariesFinancial intermediaries are financial institutions through which savers can indirectly provide funds to borrowers.Financial IntermediariesBankstake deposits from people who want to save and use the deposits to make loans to people who want to borrow.pay depositors interes

58、t on their deposits and charge borrowers slightly higher interest on their loans.Financial Intermediaries Bankshelp create a medium of exchange by allowing people to write checks against their deposits.A medium of exchange is an item that people can easily use to engage in transactions. facilitate t

59、he purchases of goods and services.Financial IntermediariesMutual FundsA mutual fund is an institution that sells shares to the public and uses the proceeds to buy a portfolio, of various types of stocks, bonds, or both.Mutual funds allow people with small amounts of money to easily diversify.Financ

60、ial Intermediaries Other Financial Institutions Credit unionsPension fundsInsurance companiesLoan sharksSAVING AND INVESTMENT IN THE NATIONAL INCOME ACCOUNTSRecall that GDP is both total income in an economy and total expenditure on the economys output of goods and services:Y = C + I + G + NXSome Im