mankiw8echap02display - Intermediate Macroeconomics Pidong...

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Intermediate MacroeconomicsPidong Huang1
IN THIS CHAPTER, YOU WILL LEARN:Important macroeconomic statistics:gross domestic product (GDP)the consumer price index (CPI)the unemployment rate2
GDPGross domestic product (GDP)market value of all final goods and services produced within a country in a given period of time3
ExampleA farmer grows a bushel of wheat and sells it to a miller for $1.00. The miller turns the wheat into flour and sells it to a baker for $3.00. The baker uses the flour to make a loaf of bread and sells it to an engineer for $6.00. The engineer eats the bread. Compute value added at each stage of production and GDP
The Circular FlowHouseholdsFirmsGoodsLaborExpenditure ($)Income ($)
GDP = expenditure on domestically produced g & sdddYCIGEX()()()fffCCIIGGEX()fffCIGEXCIGCIGEXIMCIGNX
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