14 chapter 2 the data of macroeconomics stocks vs

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14CHAPTER 2The Data of MacroeconomicsStocks vs. FlowsA flowis a quantity measured per unit of time. E.g., “U.S. investment was $2 trillion during 2012.”FlowStockA stockis a quantity measured at a point in time. E.g., “The U.S. capital stock was $10 trillion on January 1, 2012.”
15CHAPTER 2The Data of MacroeconomicsStocks vs. Flows - examplesthe govt budget deficitthe govt debt# of new college graduates this year# of people with college degreesa person’s annual savinga person’s wealthflowstock
NOW YOU TRYStock or Flow?Stock or Flow?the balance on your credit card statementhow much you study economics outside of classthe size of your compact disc or MP3 collectionthe inflation ratethe unemployment rate16
17CHAPTER 2The Data of Macroeconomics
18CHAPTER 2The Data of MacroeconomicsU.S. Government Spending, 2011- Federal20.13,031Govt spending- State & localDefense8.211.95.52.71,2331,798825408Non-defense% of GDP$ billions
19CHAPTER 2The Data of MacroeconomicsNet exports (NX)NX= exports – importsexports: the value of g&s sold to other countriesimports: the value of g&s purchased from other countriesHence, NX equals net spending from abroad on our g&s
20CHAPTER 2The Data of MacroeconomicsU.S. Net Exports, 2011$ billions% of GDPNet exports of g & s–579–3.8Exports2,08613.8Goods 1,4739.8Services6124.1Imports2,66417.7Goods 2,23814.8Services4262.8
NOW YOU TRYAn expenditure-output puzzle?An expenditure-output puzzle?Suppose a firm: produces $10 million worth of final goodsonly sells $9 million worthDoes this violate the expenditure = outputidentity?21
22CHAPTER 2The Data of Macroeconomics
23CHAPTER 2The Data of MacroeconomicsGDP: An important and versatile conceptWe have now seen that GDP measures:total incometotal outputtotal expenditurethe sum of value added at all stages in the production of final goods
24CHAPTER 2The Data of Macroeconomics
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