文档介绍：MEASURING A NATION’S INCOME
WHAT’S NEW IN THE FIFTH EDITION:
There is more clarification on the GDP deflator The Case Study on “Who Wins at the Olympics?” is now an FYI box
LEARNING OBJECTIVES:
By the end of this chapter, students should understand:
Ø why an economy’s total income equals its total expenditure
Ø how gross domestic product (GDP) is defined and calculated
Ø the breakdown of GDP into its four major components
Ø the distinction between real GDP and nominal GDP
Ø whether GDP is a good measure of economic well-being
CONTEXT AND PURPOSE:
Chapter 23 is the first chapter in the macroeconomic section of the text It is the first of a two-chapter sequence that introduces students to two vital statistics that economists use to monitor the macroeconomy—GDP and the consumer price index Chapter 10 develops how economists measure production and income in the macroeconomy The following chapter, Chapter 11, develops how economists measure the level of prices in the macroeconomy Taken together, Chapter 10 concentrates on the
quantity of output in the macroeconomy while Chapter 11 concentrates on the price of output in the macroeconomy
The purpose of this chapter is to provide students with an understanding of the measurement and the use of gross domestic product (GDP) GDP is the single most important measure of the health of the macroeconomy Indeed, it is the most widely reported statistic in every developed economy
KEY POINTS:
· 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 economy’s total expenditure on newly produced goods and services and the total income earned from the production of these goods and services More precisely, 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