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NIPACLASS - 1 Measuring the Economy ย Key Points ยข...

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Unformatted text preview: 1 Measuring the Economy ยก Key Points ยข Circular Flow ยข NIPA ยข GDP concepts 1 ยข Value Added ยข Real vs. Nominal GDP ยข Deflators ยข Welfare Comparisons Circular flow Antigrowth Macro (episode 20) In the News? ยก 2 Course Issues ยข Gradebook ยข Math Engineering Career Fair 9/24 ยข Register iClicker 3 2 Key Points of Circular Flow Model? ยก Equivalence of Real and money flows ยข Goods and Services/ Expenditures ยข Factor services/ income ยก Equality of Production and 4 Income ยก Leakages and Injections ยข Leakages:S (T, M) Injections I (G, X) ยก Measure GDP by Type of Exp, Income, Disposition S (T,M) I (G,X) What is (Nominal) GDP? ยก Expenditures on Newly Produced final goods and services valued at market prices by factors located in U.S. 1. Total flow 1. Stock vs flow 2. newly produced 3. final goods and services 5 4. valued at market prices 1. Why? 5. Factors located in U.S. 1. Vs GNP Calculate GDP ยก Government purchases of goods and services \$240 ยก Depreciation \$240 ยก Gross private domestic investment \$400 ยก Personal income taxes 140 6 ยก Net taxes 120 ยก Net exports of goods and services 80 ยก Personal consumption expenditures 640 ยก Net interest 100 a. 1,960 b. 1,360 c. 1,120 d. 100 3 GDP (nominal) 7 8 How do we calculate Nominal GDP? ยก 1. Spending by Type of Expenditures ยข C+I+G+X-M ยก 2. Income Generated by Type of Income ยข Comp of Employees + Corp Profits + Rental Income +Interest + Prop....
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NIPACLASS - 1 Measuring the Economy ย Key Points ยข...

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