EC1301_-_Lecture_7_-_Measuring_a_Nation's_Production_and_Income

EC1301_-_Lecture_7_-_Measuring_a_Nation's_Production_and_Income

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1 EC1301 Measuring a Nation’s Production and Income © Connie CHUNG LECTURE 7  Section 1 MEASURING A NATION’S  PRODUCTION AND INCOME
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2 EC1301 Measuring a Nation’s Production and Income © Connie CHUNG Agenda The “Flip” Sides of Macroeconomic Activity: Production  and Income The Circular Flow of Production and Income  The  Production Approach : Measuring a Nation’s  Macroeconomic Activity Using  Gross Domestic  Product The  Income Approach :  Measuring a Nation’s  Macroeconomic Activity Using  National Income Real  versus  Nominal GDP  Measuring change in prices over time –  GDP Deflator Fluctuations in GDP  GDP as a Measure of Welfare 
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3 EC1301 Measuring a Nation’s Production and Income © Connie CHUNG Objectives 1. Introduce you to the study of macroeconomics 2. Establish what  economic growth  is and how it  can be measured 3. Understand matters relating to  GDP  ie. its  different measures, inclusions, exclusions and  its relationship to the  business cycle  and  overall economic well-being of a nation’s  citizens
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4 EC1301 Measuring a Nation’s Production and Income © Connie CHUNG Key Terms chain index indirect taxes private investment expenditures consumption intermediate goods real GDP expenditures depreciation macroeconomics recession depression national income services durable goods net exports trade deficit economic growth net investment trade surplus expansion net national product (NNP) transfer payments GDP deflator nominal GDP trough government purchases nondurable goods value added gross domestic product peak (GDP) personal income gross investment personal disposable income gross national product (GNP)
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5 EC1301 Measuring a Nation’s Production and Income © Connie CHUNG Macroeconomics Branch of economics that deals with a nation’s  economy as a whole Focuses on the  economic issues  often  discussed in the media and in political debates    Unemployment    Inflation    Growth    Trade    Gross Domestic Product (GDP)
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6 EC1301 Measuring a Nation’s Production and Income © Connie CHUNG Questions What does the term “Gross Domestic Product”  really mean? Since prices change, how can we measure  real  income  over long periods of time?  What are  recessions   and how frequently have  they occurred? Do increases in GDP necessarily translate into  improvements in the  welfare   of citizens?   
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EC1301 Measuring a Nation’s Production and Income © Connie CHUNG Macroeconomics Focuses on  two basic issues : 1. Long-run economic growth , or the        factors behind the rise in living standards in   modern  economies eg. Singapore  2. Fluctuations
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This note was uploaded on 03/19/2012 for the course ARTS EC1301 taught by Professor Forgot during the Fall '08 term at National University of Singapore.

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EC1301_-_Lecture_7_-_Measuring_a_Nation's_Production_and_Income

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