NIPACLASS - 1 Measuring the Economy Key Points Circular...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Measuring the Economy Key Points Circular Flow NIPA GDP concepts 1 Value Added Real vs. Nominal GDP Deflators Welfare Comparisons Circular flow Antigrowth Macro (episode 20) In the News? 2 Course Issues Gradebook Math Engineering Career Fair 9/24 Register iClicker 3 2 Key Points of Circular Flow Model? Equivalence of Real and money flows Goods and Services/ Expenditures Factor services/ income Equality of Production and 4 Income Leakages and Injections Leakages:S (T, M) Injections I (G, X) Measure GDP by Type of Exp, Income, Disposition S (T,M) I (G,X) What is (Nominal) GDP? 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 Government purchases of goods and services $240 Depreciation $240 Gross private domestic investment $400 Personal income taxes 140 6 Net taxes 120 Net exports of goods and services 80 Personal consumption expenditures 640 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? 1. Spending by Type of Expenditures C+I+G+X-M 2. Income Generated by Type of Income Comp of Employees + Corp Profits + Rental Income +Interest + Prop....
View Full Document

This note was uploaded on 02/08/2011 for the course ECONOMICS 220:103 taught by Professor Sheflin during the Spring '08 term at Rutgers.

Page1 / 9

NIPACLASS - 1 Measuring the Economy Key Points Circular...

This preview shows document pages 1 - 4. Sign up to view the full document.

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