中級宏觀經(jīng)濟學(xué)(原書第6版)第二章答案

ReviewQuestionsThethreeapproachestonationalincomeaccountingaretheproductapproach,theincomeappandtheexpenditureapproach.Theyallgivethesameanswerbecausetheyaredesignedthatentrybasedononeapproachhasanentryintheotherapproacheswiththesamevalue.Wheneoutputisproducedandsold,itsproductioniscountedintheproductapproach,itssaleistheexpenditureapproach,andthefundsreceivedbythesellerarecountedintheincomeGoodsaremeasuredatmarketvalueinGDPaccountingsothatdifferenttypesofgoodsandcanbeaddedtogether.Usingmarketpricesallowsustocountupthetotaldollarvalueofeconomy’soutput.Theproblemwiththisphnotallgoodsandservicesaresoldinmarkets,sowemaynotbeabletocounteverything.Importantexamplesarehomemakingandenvironmentalquality.Intermediategoodsandservicesareusedupinproducingothergoodsinthesameperiod(yewhichtheywereproduced,whilefinalgoodsandservicesarethosethatarepurchasedbyorarecapitalgoodsthatareusedtoproducefutureoutput.Thedistinctionisimportant,wanttocountonlythevalueoffinalgoodsproducedintheeconomy,notthevalueofgoodseachstepalongtheway.GNPisthemarketvalueoffinalgoodsandservicesnewlyproducedbydomesticfactorsofproductionduringthecurrentperiod,whereasGDPisproductiontakingplacewithinacountThus,GNPdiffersfromGDPwhenforeignfactorsareusedtoproduceoutputinacountry,ordomesticfactorsareusedtoproduceoutputinanothercor.,whereNFPnetfactorpaymentsfromabroad,whichequalsincomepaidtodomesticfactorsofproductionbyoftheworldminusincomepaidtoforeignfactorsofproductionbythedomesticeconomy.AthatemploysmanyforeignworkerswilllikelyhavenegativeNFP,soGDPwillbehigherthanThefourcomponentsofspendingareconsumption,investment,governmentpurchases,andnetexports.Importsmustbesubtracted,becausetheyareproducedabroadandwewantGDPtocoonlythosegoodsandservicesproducedwithinthecountry.Forexample,supposeacarbuiltJapanisimportedintotheUnitedStates.ThecarcountsasconsumptionspendinginU.S.GDsubtractedasanimportaswell,soonnetitdoesnotaffectU.S.GDP.However,itiscounJapan’sGDPasanexport.Privatesavingisprivatedisposableincomeminusconsumption.Privatedisposableincomeisoutputminustaxespaidplustransfersandinterestreceivedfromthegovernment.Privateusedtofinanceinvestmentspending,thegovernmentbudgetdeficit,andthecurrentaccountNationalsavingisprivatesavingplusgovernmentsaving.Nationalwealthisthetotalwealthoftheresidentsofacountry,andconsistsofitsdomeassetsandnetforeignassets.Wealthisimportantbecausethelong-runeconomicwell-beingcountrydependsonit.Nationalwealthisrelatedtonationalsavingbecausenationalsavinflowofadditionstothestockofnationalwealth.RealGDPistheusefulconceptforfiguringoutacouomtNominalGDPmayrisebecauseofincreasesinpricesratherthangrowthinrealoutput.TheCPIisapriceindexthatiscalculatedasthevalueofafixedsetofconsumergoodsaatcurrentpricesdividedbythevalueofthefixedsetatbase-yearprices.CPIinflationrateoftheCPI.CPIinflationoverstatestrueinflationbecauseitishardtomeasurechanandbecausethepriceindexdoesn’taccountforsubstitutionawayfrombecomemoreexpensivetowardsgoodsthatbecomerelativelycheaper.Chapter2TheMeasurementandStructureoftheNationalEconomyPAGE17Chapter2TheMeasurementandStructureoftheNationalEconomyPAGE17Thenominalinterestrateistherateatwhichthenominal(ordollar)valueofanassetincreasesovertime.Therealinterestrateistherateatwhichtherealvalueorpurchasingpowerofanassetincreasesovertime,andisequaltothenominalinterestrateminustheinflationrate.Theexpectedrealinterestrateistherateatwhichtherealvalueofanassetincreaseovertime.Itisequaltothenominalinterestrateminustheexpectedinflationrate.Theconceptthatismostimportanttoborrowersandlendersistheexpectedrealinterestrate,becauseitaffectstheirdecisionstoborroworlend.NumericalProblemsGDPisthevalueofallfinalgoodsandservicesproducedduringtheyear.Thefinaloutputofcoconutsis1000,whichisworth500fish,becausetwococonutsareworthonefish.Ofthe500fishcaughtduringtheyear,the100fishusedasfertilizerareanintermediategood,sothefinaloutputis400fish.Sointermsoffish,GDPconsistsof500fishworthofcoconutsplus400fish,withatotalvalueof900fish.Tofindconsumptionandinvestment,wemustfindoutwhathappenstoallthecoconutsandfish.Gilliganconsumesallhis200coconuts(worth100fish)and100fish,sohisconsumptionisworth200fish.TheProfessorstores100coconutswithavalueof50fish.Inanidealaccountingsystem,thesestoredcoconutswouldbetreatedasinvestment.However,inthenationalincomeaccounts,becauseitissodifficulttotellwhendurablegoodsareconsumedandwhentheyaresaved,theyarecountedasconsumption.SotheProfessor’sconsumptionconsistsof800coconuts(value400fish)and300fish,foratotalvalueof700fish.Thustheeconomy’stotalconsumptionisvaluedat900fishandinvestmentiszero.Intermsofincome,Gilligan’sincomeisclearlyworth200fish(100fishplus200coconutsworth100fish).TheProfessor’sincomeislesseasilycalculated,becauseheuses100fishtofertilizethecoconuttrees.These100fisharethereforenotincometohim.ThustheProfessor’sincomeis800coconuts(1000coconutsminusthe200coconutspaidtoGilligan)plus300fish(500fishminus100fishpaidtoGilliganandminus100fishusedasfertilizer).Intermsoffish,theProfessor’sincomehasavalueof700fish.Thisquestionillustratessomeofthenuancesofnationalincomeaccounting.Manydifficultchoicesandmeasurementissuesareinvolvedinconstructingtheaccounts.Here,forexample,itisclearthatwhatwecallconsumptionreallyisn’tjusttheamountofgoodsconsumersuseupduringtheyear,butalsoincludesconsumptiongoodsthatarepurchasedbutsavedforthefuture.Sincethereisnowaytomeasurewhengoodsareusedaftertheyarepurchased,theaccountsareunabletodistinguishconsumptionfromstorageofgoods.Anothersubtletyisthetreatmentofthefishusedasfertilizer.Ifthefertilizerincreasesfutureoutputratherthancurrentoutput,thenthefertilizerisnotusedupduringtheyearandrepresentsinvestmentof100fish.Inthiscase,GDPwouldequal1000fish,consumptionis900fish,investmentis100fish,theProfessor’sincomeis800fish,andGilligan’sincomeis200fish.(a)FurnituremadeinNorthCarolinathatisboughtbyconsumerscountsasconsumption,soconsumptionincreasesby$6billion,investmentisunchanged,governmentpurchasesareunchanged,netexportsareunchanged,andGDPincreasesby$6billion.FurnituremadeinSwedenthatisboughtbyconsumerscountsasconsumptionandimports,soconsumptionincreasesby$6billion,investmentisunchanged,governmentpurchasesareunchanged,netexportsfallby$6billion,andGDPisunchanged.FurnituremadeinNorthCarolinathatisboughtbybusinessescountsasinvestment,soconsumptionisunchanged,investmentincreasesby$6billion,governmentpurchasesareunchanged,netexportsareunchanged,andGDPincreasesby$6billion.FurnituremadeinSwedenthatisboughtbybusinessescountsasinvestmentandimports,soconsumptionisunchanged,investmentincreasesby$6billion,governmentpurchasesareunchanged,netexportsdeclineby$6billion,andGDPisunchanged.(a)ABCproducesoutputvaluedat$2millionandhastotalexpensesof$1.3million($1millionforlabor,$0.1millioninterest,$0.2milliontaxes).Soitsprofitsare$0.7million.XYZproducesoutputvaluedat$3.8million($3millionforthethreecomputersthatweresold,plus$0.8millionfortheunsoldcomputerininventory)andhasexpensesof$3.2million($2millionforcomponents,$0.8millionforlabor,and$0.4millionfortaxes).Soitsprofitsare$0.6million.Accordingtotheproductapproach,theGDPcontributionsofthesecompaniesare$3.8million,thevalueofthefinalproductofXYZ.ABC’sproductionisofanintermediategood,usedcompletelybyXYZ,andsoisnotcountedinGDP.Accordingtotheexpenditureapproach,theGDPcontributionisalso$3.8million,with$3million(ofsoldcomputers)addingtothecapitalstock(asinvestmentspending),and$0.8million(theunsoldcomputer)asinventoryinvestment.TheincomeapproachyieldsthesameGDPtotalcontribution.Theamountsare:LaborProfitTaxesInterest

ABC$1.0$0.7$0.2$0.1

XYZ$0.8million$0.6million$0.4million$0.0million

TOTAL$1.8million$1.3million$0.6million$0.1millionTotalofallincomes$3.8millionIfABCpaysanadditional$.5millionforcomputerchipsfromabroad,theresultschangeslightly.Thecorrectansweriseasiesttoseeusingtheexpenditureapproach.Asinparta,thereis$3.8millionspentonfinalgoods,butnowtherearealsonetexportsof–$0.5million.Sothetotalexpenditureondomesticallyproducedgoodsisonly$3.3million.Theproductapproachgetsthesameanswerbecausethe$0.5millionisacontributiontoGDPofthecountryinwhichthechipsweremade,andsomustbedeductedfromtheGDPoftheUnitedStates.ThevalueaddedintheUnitedStatesisonly$3.3million.Finally,theincomeapproachgivesthesameanswerasinparta,exceptthatthecostofimportingthechipsreducesABC’sprofitsby$0.5million,sotheoftheincomesisonly$3.3million.(a)Productapproach:$2gasstation’svalueadded$28productminus$26valueofproductproducedinthepreviousyear.Expenditureapproach:$2=$28consumptionspendingplusinventoryinvestmentof–$26.Incomeapproach:$2paidtothefactorsofproductionatthegasstation(wagesofemployees,interest,taxes,profits).Productapproach:$60,000broker’sfeeforprovidingbrokerageservices.Expenditureapproach:$60,000countsasresidentialinvestmentmadebythehomebuyer.Theimportantpointhereisthatthetransferofanexistinggood,evenatahighervaluethanthatatwhichitwasoriginallysold,doesnotaddtoGDP.Incomeapproach:$60,000incometothebrokerforwages,profits,etc.Productapproach:$40,000salaryplus$16,000childcareequals$56,000.Notethatthereisasenseinwhichthechildcareisanintermediateserviceandshouldnotbecounted,becausewithoutitthehomemakerwouldnotbeabletowork.Butinpracticethereisnowaytoseparatesuchintermediateservicesfromfinalservices,sotheyarealladdedtoGDP.Expenditureapproach:$56,000($16,000consumptionspendingonchildcareservicesplus$40,000incategoriesthatdependonwhatjobthehomemakerhas).Incomeapproach:$56,000($40,000compensationofhomemakerplus$16,000incometothefactorsproducingthechildcare:employees’wages,interest,taxes,profits).Productapproach:$100millionofacapitalgood.Sinceitisproducedwithlocallaborandmaterials,andassumingnopaymentsgotoJapanesefactorsofproduction,thisisalladdedtoU.S.GDP.Expenditureapproach:$100millionnetexports,sincetheplantisownedbytheJapanese.(ItisnotpartofgrossdomesticinvestmentbecausetheplantisnotacapitalgoodownedbyU.S.residents.)Incomeapproach:$100millionpaidtoU.S.factorsofproduction.Productapproach:$0becausenothingisproduced.Expenditureapproach:$0becausethisisatransfer,notagovernmentpurchaseofgoodsorservices.Incomeapproach:$0,becausethisisnotapaymenttoafactorofproduction,justatransfer.Productapproach:$5,000worthofadvertisingservices.Expenditureapproach:$5,000ofgovernmentpurchases.Incomeapproach:$5,000compensationofemployees.Productapproach:$120millioncomposedof$100millionofnewcarsproducedplus$20millionofsalesservicesprovidedbytheconsortium($60millionsalespriceminus$40millioncost).Expenditureapproach:$100millionbyHertzasinvestmentplus$60millionbythepublicforconsumptionoftheusedcarsminus$40millionofinvestmentgoodssoldbyHertz,foratotalof$120million.Incomeapproach:$100milliontothefactorsofproductionofGMplus$20millioninpaymentstothefactorsofproductionandprofitsfortheconsortium.5. Givendata:I40,G30,GNP200,CA–20NXNFP,T60,TR25,INT15,NFP7–9–2.SinceGDPGNP–NFP,GDP200–(–2)202Y.SinceNXNFPCA,NXCA–NFP–20–(–2)–18.SinceYCIGNX,CY–(IGNX)202–(4030(–18))150.SpvtS

(YNFP–TTRINT)–C(202(–2)–602515)–15030.S

(T–TR–INT)pvt–G(60–25–15)–30–10.SSpvt

govtgovtgovt

30(–10)20.Consumption150Netexports–18GDP202Netfactorpaymentsfromabroad–2Privatesaving30Governmentsaving–10Nationalsaving206.Base-yearquantitiesatcurrent-yearprices

atbase-yearpricesApples

3000$3$9,000

$6,000

3000$2BananasOrangesTotal

6000$2$12,0008000$5$40,000$61,000

6000$3$18,0008000$4$32,000$56,000Current-yearquantitiesatcurrent-yearprices atbase-yearpricesApplesBananasOrangesTotal

4,000$3$12,00014,000$2$28,00032,000$5$160,000$200,000

4,000$2$8,00014,000$3$42,00032,000$4$128,000$178,000NominalGDPisjustthedollarvalueofproductioninayearatpricesinthatyear.NominalGDPis$56thousandinthebaseyearand$200thousandinthecurrentyear.NominalGDPgrew257%betweenthebaseyearandthecurrentyear:[($200,000/$56,000)–1]100%257%.RealGDPiscalculatedbyfindingthevalueofproductionineachyearatbase-yearprices.Thus,fromthetableabove,realGDPis$56,000inthebaseyearand$178,000inthecurrentyear.Inpercentageterms,realGDPincreasesfromthebaseyeartothecurrentyearby[($178,000/$56,000)–1]100%218%.TheGDPdeflatoristheratioofnominalGDPtorealGDP.Inthebaseyear,nominalGDPequalsrealGDP,sotheGDPdeflatoris1.Inthecurrentyear,theGDPdeflatoris$200,000/$178,0001.124.ThustheGDPdeflatorchangesby[(1.124/1)–1]100%12.4%fromthebaseyeartothecurrentyear.NominalGDProse257%,pricesrose12.4%,andrealGDProse218%,somostoftheincreaseinnominalGDPisbecauseoftheincreaseinrealoutput,notprices.Noticethatthequantityoforangesquadrupledandthequantityofbananasmorethandoubled.Calculatinginflationrates:1929–30:[(50.0/51.3)–1]100%–2.5%1930–31:[(45.6/50.0)–1]100%–8.8%1931–32:[(40.9/45.6)–1]100%–10.3%1932–33:[(38.8/40.9)–1]100% –5.1%Theseallshowdeflation(pricesaredecliningovertime),whereasrecentlywehavehadnothingbutinflation(pricesrisingovertime).Thenominalinterestrateis[(545/500)–1]100%9%.Theinflationrateis[(214/200)–1]100%7%.Sotherealinterestrateis2%(9%nominalrate–7%inflationrate).Expectedinflationwasonly[(210/200)–1]100%5%,sotheexpectedrealinterestratewas4%(9%nominalrate–5%expectedinflationrate).(a)TheannualrateofinflationfromJanuary1,2005,toJanuary1,2007,is10%.Thiscanbefoundbycalculatingtheconstantrateofinflationthatwouldraisethedeflatorfrom200to242intwoyears.Thisgivestheequation(1(242/200),whichhasthesolution10%.Aneasywaytothinkaboutthisquestionisthis.Aconstantinflationrateofraisesthedeflatorfrom200onJanuary1,2005,to(1onJanuary1,2006,andto(1(1242onJanuary1,2007.Soweneedtosolvetheexpression(1242/200.Bysimilarreasoning,theinflationrateoverthethree-yearperiodis(1266.2/200,or10%.Wecanderiveageneralexpressioninthesameway:1P/P1 01P/P2 1n 1Pn Multiplyingalltheselinestogether,weget:1 0 2 1 n n–1 n (1(P/P)(P/P)(P/P )1 0 2 1 n n–1 n AnalyticalProblemsThekeytothisquestionisthatrealGDPisnotthesamethingaswell-being.PeoplemaybebetteroffevenifrealGDPislower;forexample,thismayoccurbecausetheimprovementinthehealthofworkersismorevaluabletosocietythanthelossofGDPduetotheregulation.Ideally,wewouldliketobeabletocomparethecostsandbenefitsofsuchregulations;theyshouldbeputinplaceiftheoverallcosts(thereducedGDPinthiscase)arevaluedlessthantheoverall(theworkers’health).NationalsavingdoesnotrisebecauseoftheswitchtoCheapCallbecausealthoughconsumptionspendingdeclinesby$2million,sohavetotalexpenditures(GDP),whichequaltotalincome.Sinceincomeandspendingbothdeclinedbythesameamount,nationalsavingisunchanged.(