Principles+of+Economics+7th+Edition+Mankiw-Solution+Manual Chapter 23 10

Principles+of+Economics+7th+Edition+Mankiw-Solution+Manual Chapter 23 10

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1、Chapter10/MeasuringaNation’sIncome❖19723MEASURINGANATION’SINCOMEWHAT’SNEWINTHESEVENTHEDITION:ThereisanewIntheNewsboxon“MeasuringMacroeconomicWell-Being”andtableshavebeenupdated.LEARNINGOBJECTIVES:Bytheendofthischapter,studentsshouldunderstand:Øwhyaneconomy’stotalincomeequalsitstota

2、lexpenditure.Øhowgrossdomesticproduct(GDP)isdefinedandcalculated.ØthebreakdownofGDPintoitsfourmajorcomponents.ØthedistinctionbetweenrealGDPandnominalGDP.ØwhetherGDPisagoodmeasureofeconomicwell-being.CONTEXTANDPURPOSE:Chapter10isthefirstchapterinthemacroeconomicsectionofthetext.Itis

3、thefirstofatwo-chaptersequencethatintroducesstudentstotwovitalstatisticsthateconomistsusetomonitorthemacroeconomy—GDPandtheconsumerpriceindex.Chapter10developshoweconomistsmeasureproductionandincomeinthemacroeconomy.Thefollowingchapter,Chapter11,developshoweconomistsmeasurethelevel

4、ofpricesinthemacroeconomy.Takentogether,Chapter10concentratesonthequantityofoutputinthemacroeconomywhileChapter11concentratesonthepriceofoutputinthemacroeconomy.Thepurposeofthischapteristoprovidestudentswithanunderstandingofthemeasurementandtheuseofgrossdomesticproduct(GDP).GDPisth

5、esinglemostimportantmeasureofthehealthofthemacroeconomy.Indeed,itisthemostwidelyreportedstatisticineverydevelopedeconomy.©2012CengageLearning.AllRightsReserved.Maynotbescanned,copiedorduplicated,orpostedtoapubliclyaccessiblewebsite,inwholeorinpart.Chapter10/MeasuringaNation’sIncome

6、❖197KEYPOINTS:·Becauseeverytransactionhasabuyerandaseller,thetotalexpenditureintheeconomymustequalthetotalincomeintheeconomy.·Grossdomesticproduct(GDP)measuresaneconomy’stotalexpenditureonnewlyproducedgoodsandservicesandthetotalincomeearnedfromtheproductionofthesegoodsandservices.M

7、oreprecisely,GDPisthemarketvalueofallfinalgoodsandservicesproducedwithinacountryinagivenperiodoftime.·GDPisdividedamongfourcomponentsofexpenditure:consumption,investment,governmentpurchases,andnetexports.Consumptionincludesspendingongoodsandservicesbyhouseholds,withtheexceptionofpu

8、rchasesofnewhousing.Invest

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