ECN 211 L9 NIA_BB

ECN 211 L9 NIA_BB - ECN 211 Macroeconomic Principles

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
03/29/10 1 ECN 211 Macroeconomic Principles L9: National Income Accounting
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
03/29/10 2 National Income and Product Accounting (NIPA) … seeks to measure  __the output__  of an entire economy as  well as  flows  between sectors How can we measure total output of the US economy?
Background image of page 2
03/29/10 3 Circular Flow and NIPA Three ways to measure total value of output: Outputs – What is produced Expenditures – What is spent Incomes – What is earned. By definition:   income=expenditure=value of output
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
03/29/10 4 Gross Domestic Product (GDP)  … the  _market value__  of all  _final__   goods and services produced in an  economy  ___within a year_____ Three aspects to note: – Market Value – Final Goods and Services • Not “all goods” – Period of Account
Background image of page 4
03/29/10 5 GDP A larger GDP (usually) means that we have  _more__ goods  and services that can be used to satisfy our unlimited  wants and needs – The PPC has shifted  ___outwards____ How big is US GDP?
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
03/29/10 6 GDP 0 2000 4000 6000 8000 10000 12000 14000 1929 1935 1941 1947 1953 1959 1965 1971 1977 1983 1989 1995 2001 Year $ (billions)
Background image of page 6
03/29/10 7 Market Value Most activities (outputs) not  __traded in a market__  are not included  in GDP Its  value  cannot be measured accurately though it  is  productive Thus GDP is an  __underestimate___   of economic activity Examples:  – Housework – Illegal activities – Barter trades Typically GDP is a  larger__  under-estimate of economic activity for  __poorer__  countries.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Final Goods and Services Only goods and services bought by the 
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/29/2010 for the course ECN 12645 taught by Professor Croucher during the Spring '10 term at ASU.

Page1 / 25

ECN 211 L9 NIA_BB - ECN 211 Macroeconomic Principles

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online