曼昆《經(jīng)濟學原理》(宏觀經(jīng)濟學分冊)英文原版PPT課件 23

1、, 2007 Thomson South-Western,Measuring a Nations Income,Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets. Macroeconomics is the study of the economy as a whole. Its goal is to explain the economic changes that affect

2、many households, firms, and markets at once.,Measuring a Nations Income,Macroeconomics answers questions like the following: Why is average income high in some countries and low in others? Why do prices rise rapidly in some time periods while they are more stable in others? Why do production and emp

3、loyment expand in some years and contract in others?,THE ECONOMYS INCOME AND EXPENDITURE,When judging whether the economy is doing well or poorly, it is natural to look at the total income that everyone in the economy is earning.,THE ECONOMYS INCOME AND EXPENDITURE,For an economy as a whole, income

4、must equal expenditure because: Every transaction has a buyer and a seller. Every dollar of spending by some buyer is a dollar of income for some seller.,Figure 1 The Circular-Flow Diagram,Spending,Revenue,Income,= Flow of inputs,and outputs,= Flow of dollars,THE MEASUREMENT OF GROSS DOMESTIC PRODUC

5、T,Gross domestic product (GDP) is a measure of the income and expenditures of an economy. GDP is the total market value of all final goods and services produced within a country in a given period of time.,THE MEASUREMENT OF GROSS DOMESTIC PRODUCT,The equality of income and expenditure can be illustr

6、ated with the circular-flow diagram.,THE MEASUREMENT OF GROSS DOMESTIC PRODUCT,“GDP is the Market Value . . .” Output is valued at market prices. “. . . Of All. . .” Includes all items produced in the economy and legally sold in markets “. . . Final . . .” It records only the value of final goods, n

7、ot intermediate goods (the value is counted only once). “. . . Goods and Services . . .” It includes both tangible goods (food, clothing, cars) and intangible services (haircuts, housecleaning, doctor visits).,THE MEASUREMENT OF GROSS DOMESTIC PRODUCT,“. . . Produced . . .” It includes goods and ser

8、vices currently produced, not transactions involving goods produced in the past. “ . . . Within a Country . . .” It measures the value of production within the geographic confines of a country. “. . . In a Given Period of Time.” It measures the value of production that takes place within a specific

9、interval of time, usually a year or a quarter (three months).,THE COMPONENTS OF GDP,GDP includes all items produced in the economy and sold legally in markets. What Is Not Counted in GDP? GDP excludes most items that are produced and consumed at home and that never enter the marketplace. It excludes

10、 items produced and sold illicitly, such as illegal drugs.,THE COMPONENTS OF GDP,GDP (Y) is the sum of the following: Consumption (C) Investment (I) Government Purchases (G) Net Exports (NX) Y = C + I + G + NX,THE COMPONENTS OF GDP,Consumption (C): The spending by households on goods and services, w

11、ith the exception of purchases of new housing. Investment (I): The spending on capital equipment, inventories, and structures, including new housing.,THE COMPONENTS OF GDP,Government Purchases (G): The spending on goods and services by local, state, and federal governments. Does not include transfer

12、 payments because they are not made in exchange for currently produced goods or services. Net Exports (NX): Exports minus imports.,Table 1 GDP and Its Components,GDP and Its Components (2004),REAL VERSUS NOMINAL GDP,Nominal GDP values the production of goods and services at current prices. Real GDP

13、values the production of goods and services at constant prices.,REAL VERSUS NOMINAL GDP,An accurate view of the economy requires adjusting nominal to real GDP by using the GDP deflator.,Table 2 Real and Nominal GDP,Table 2 Real and Nominal GDP,Table 2 Real and Nominal GDP,The GDP Deflator,The GDP de

14、flator is a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100. It tells us what portion of the rise in nominal GDP that is attributable to a rise in prices rather than a rise in the quantities produced.,The GDP Deflator,The GDP deflator is calculated as follows:

15、,The GDP Deflator,Nominal GDP is converted to real GDP as follows:,Table 2 Real and Nominal GDP,Figure 2 Real GDP in the United States,Billions of,2000 Dollars,$10,000,9,000,8,000,7,000,6,000,5,000,4,000,3,000,1970,1975,1980,1985,1990,2000,1995,2005,2,000,IS GDP A GOOD MEASURE OF ECONOMIC WELL-BEING

16、?,GDP is the best single measure of the economic well-being of a society. GDP per person tells us the income and expenditure of the average person in the economy. Higher GDP per person indicates a higher standard of living. GDP is not a perfect measure of the happiness or quality of life, however.,G

17、DP AND ECONOMIC WELL-BEING,Some things that contribute to well-being are not included in GDP. The value of leisure. The value of a clean environment. The value of almost all activity that takes place outside of markets, such as the value of the time parents spend with their children and the value of

18、 volunteer work.,Table 3 GDP and the Quality of Life,Because every transaction has a buyer and a seller, the total expenditure in the economy must equal the total income in the economy. Gross domestic product (GDP) measures an economys total expenditure on newly produced goods and services and the t

19、otal income earned from the production of these goods and services.,GDP is the market value of all final goods and services produced within a country in a given period of time. GDP is divided among four components of expenditure: consumption, investment, government purchases, and net exports.,Nomina

20、l GDP uses current prices to value the economys production. Real GDP uses constant base-year prices to value the economys production of goods and services. The GDP deflatorcalculated from the ratio of nominal to real GDPmeasures the level of prices in the economy.,GDP is a good measure of economic w

21、ell-being because people prefer higher to lower incomes. It is not a perfect measure of well-being because some things, such as leisure time and a clean environment, are not measured by GDP.,Dollar figures from different points in time do not represent a valid comparison of purchasing power. Various

22、 laws and private contracts use price indexes to correct for the effects of inflation. The real interest rate equals the nominal interest rate minus the rate of inflation., 2007 Thomson South-Western,Measuring the Cost of Living,Inflation refers to a situation in which the economys overall price lev

23、el is rising. The inflation rate is the percentage change in the price level from the previous period.,THE CONSUMER PRICE INDEX,The consumer price index (CPI) is a measure of the overall cost of the goods and services bought by a typical consumer. The Bureau of Labor Statistics reports the CPI each

24、month. It is used to monitor changes in the cost of living over time.,THE CONSUMER PRICE INDEX,When the CPI rises, the typical family has to spend more dollars to maintain the same standard of living.,How the Consumer Price Index Is Calculated,1. Fix the basket. Determine what prices are most import

25、ant to the typical consumer. The Bureau of Labor Statistics (BLS) identifies a market basket of goods and services the typical consumer buys. The BLS conducts monthly consumer surveys to set the weights for the prices of those goods and services.,How the Consumer Price Index Is Calculated,2. Find th

26、e prices. Find the prices of each of the goods and services in the basket for each point in time. 3. Compute the baskets cost. Use the data on prices to calculate the cost of the basket of goods and services at different times.,How the Consumer Price Index Is Calculated,4. Choose a base year and com

27、pute the index. Designate one year as the base year, making it the benchmark against which other years are compared. Compute the index by dividing the price of the basket in one year by the price in the base year and multiplying by 100.,How the Consumer Price Index Is Calculated,5. Compute the infla

28、tion rate. The inflation rate is the percentage change in the price index from the preceding period.,How the Consumer Price Index Is Calculated,The inflation rate is calculated as follows:,Table 1 Calculating the Consumer Price Index and the Inflation Rate: An Example,Table 1 Calculating the Consume

29、r Price Index and the Inflation Rate: An Example,How the Consumer Price Index Is Calculated,Calculating the Consumer Price Index and the Inflation Rate: Another Example Base Year is 2002. Basket of goods in 2002 costs $1,200. The same basket in 2004 costs $1,236. CPI = ($1,236/$1,200) 100 = 103. Pri

30、ces increased 3 percent between 2002 and 2004.,FYI: What Is in the CPIs Basket?,Problems in Measuring the Cost of Living,The CPI is an accurate measure of the selected goods that make up the typical bundle, but it is not a perfect measure of the cost of living. Substitution bias Introduction of new

31、goods Unmeasured quality changes,Problems in Measuring the Cost of Living,Substitution Bias The basket does not change to reflect consumer reaction to changes in relative prices. Consumers substitute toward goods that have become relatively less expensive. The index overstates the increase in cost o

32、f living by not considering consumer substitution.,Problems in Measuring the Cost of Living,Introduction of New Goods The basket does not reflect the change in purchasing power brought on by the introduction of new products. New products result in greater variety, which in turn makes each dollar mor

33、e valuable. Consumers need fewer dollars to maintain any given standard of living.,Problems in Measuring the Cost of Living,Unmeasured Quality Changes If the quality of a good rises from one year to the next, the value of a dollar rises, even if the price of the good stays the same. If the quality o

34、f a good falls from one year to the next, the value of a dollar falls, even if the price of the good stays the same. The BLS tries to adjust the price for constant quality, but such differences are hard to measure.,Problems in Measuring the Cost of Living,The substitution bias, introduction of new g

35、oods, and unmeasured quality changes cause the CPI to overstate the true cost of living. The issue is important because many government programs use the CPI to adjust for changes in the overall level of prices. The CPI overstates inflation by about 1 percentage point per year.,The GDP Deflator versu

36、s the Consumer Price Index,The GDP deflator is calculated as follows:,The GDP Deflator versus the Consumer Price Index,The BLS calculates other prices indexes: The index for different regions within the country. The producer price index, which measures the cost of a basket of goods and services boug

37、ht by firms rather than consumers.,The GDP Deflator versus the Consumer Price Index,Economists and policymakers monitor both the GDP deflator and the consumer price index to gauge how quickly prices are rising. There are two important differences between the indexes that can cause them to diverge.,T

38、he GDP Deflator versus the Consumer Price Index,The GDP deflator reflects the prices of all goods and services produced domestically, whereas. the consumer price index reflects the prices of all goods and services bought by consumers.,The GDP Deflator versus the Consumer Price Index,The consumer pri

39、ce index compares the price of a fixed basket of goods and services to the price of the basket in the base year (only occasionally does the BLS change the basket). whereas the GDP deflator compares the price of currently produced goods and services to the price of the same goods and services in the

40、base year.,Figure 2 Two Measures of Inflation,1965,Percent,per Year,15,10,5,0,1970,1975,1980,1985,1990,2000,1995,2005,CORRECTING ECONOMIC VARIABLES FOR THE EFFECTS OF INFLATION,Price indexes are used to correct for the effects of inflation when comparing dollar figures from different times.,Dollar F

41、igures from Different Times,Do the following to convert dollar values from year T into todays dollars:,Dollar Figures from Different Times,Do the following to convert (inflate) Babe Ruths wages in 1931 to dollars in 2005:,Salary,Salary,Price level,l in 2005,Price levee,l in 1931,2005,1931,=,=,=,$80,

42、.,$,000,195,15,2,1,026,316,Indexation,When some dollar amount is automatically corrected for inflation by law or contract, the amount is said to be indexed for inflation.,Table 2 The Most Popular Movies of All Times, Inflation Adjusted,Real and Nominal Interest Rates,Interest represents a payment in

43、 the future for a transfer of money in the past.,Real and Nominal Interest Rates,The nominal interest rate is the interest rate usually reported and not corrected for inflation. It is the interest rate that a bank pays. The real interest rate is the interest rate that is corrected for the effects of

44、 inflation.,Real and Nominal Interest Rates,You borrowed $1,000 for one year. Nominal interest rate was 15%. During the year inflation was 10%. Real interest rate = Nominal interest rate Inflation = 15% 10% = 5%,Figure 3 Real and Nominal Interest Rates,1965,Interest Rates,(percent,per year),15%,Real

45、 interest rate,10,5,0,5,1970,1975,1980,1985,1990,1995,2000,2005,Nominal interest rate,The consumer price index shows the cost of a basket of goods and services relative to the cost of the same basket in the base year. The index is used to measure the overall level of prices in the economy. The perce

46、ntage change in the CPI measures the inflation rate.,The consumer price index is an imperfect measure of the cost of living for the following three reasons: substitution bias, the introduction of new goods, and unmeasured changes in quality. Because of measurement problems, the CPI overstates annual

47、 inflation by about 1 percentage point.,The GDP deflator differs from the CPI because it includes goods and services produced rather than goods and services consumed. In addition, the CPI uses a fixed basket of goods, while the GDP deflator automatically changes the group of goods and services over

48、time as the composition of GDP changes.,Dollar figures from different points in time do not represent a valid comparison of purchasing power. Various laws and private contracts use price indexes to correct for the effects of inflation. The real interest rate equals the nominal interest rate minus th

49、e rate of inflation., 2007 Thomson South-Western,Saving, Investment, and the Financial System,The financial system consists of the group of institutions in the economy that help to match one persons saving with another persons investment. It moves the economys scarce resources from savers to borrowe

50、rs.,FINANCIAL INSTITUTIONS IN THE U.S. ECONOMY,The financial system is made up of financial institutions that coordinate the actions of savers and borrowers. Financial institutions can be grouped into two different categories: Financial markets Financial intermediaries,FINANCIAL INSTITUTIONS IN THE

51、U.S. ECONOMY,Financial Markets Stock Market Bond Market Financial Intermediaries Banks Mutual Funds,FINANCIAL INSTITUTIONS IN THE U.S. ECONOMY,Financial markets are the institutions through which savers can directly provide funds to borrowers. Financial intermediaries are financial institutions thro

52、ugh which savers can indirectly provide funds to borrowers.,Financial Markets,The Bond Market A bond is a certificate of indebtedness that specifies obligations of the borrower to the holder of the bond. Characteristics of a Bond Term: The length of time until the bond matures. Credit Risk: The prob

53、ability that the borrower will fail to pay some of the interest or principal. Tax Treatment: The way in which the tax laws treat the interest on the bond. Municipal bonds are federal tax exempt.,Financial Markets,The Stock Market Stock represents a claim to partial ownership in a firm and is therefo

54、re, a claim to the profits that the firm makes. The sale of stock to raise money is called equity financing. Compared to bonds, stocks offer both higher risk and potentially higher returns. The most important stock exchanges in the United States are the New York Stock Exchange, the American Stock Ex

55、change, and NASDAQ.,Financial Markets,The Stock Market Most newspaper stock tables provide the following information: Price (of a share) Volume (number of shares sold) Dividend (profits paid to stockholders) Price-earnings ratio,Financial Intermediaries,Financial intermediaries are financial institu

56、tions through which savers can indirectly provide funds to borrowers.,Financial Intermediaries,Banks take deposits from people who want to save and use the deposits to make loans to people who want to borrow. pay depositors interest on their deposits and charge borrowers slightly higher interest on

57、their loans.,Financial Intermediaries,Banks help create a medium of exchange by allowing people to write checks against their deposits. A medium of exchange is an item that people can easily use to engage in transactions. facilitate the purchases of goods and services.,Financial Intermediaries,Mutual Funds A mutual fund is an institution that sells shares to the public and uses the proceeds to buy a portfolio, of various types of stocks, bonds, or both. Mutual funds allow people with small amounts of money to easily diversify.,Financial Intermediaries,Other F