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Economia - Macroeconomia

Economia - Macroeconomia

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Published by: anon-769383 on Mar 21, 2007
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1
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 0
Learning objectivesLearning objectives
In this chapter, you will learn about:
Gross Domestic Product (GDP)
the Consumer Price Index (CPI)
the Unemployment Rate
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 1
Gross Domestic ProductGross Domestic Product
Two definitions:
1.
Total expenditure ondomestically-producedfinal goods and services
2.
Total income earned bydomestically-locatedfactors of production
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 2
Why expenditure = incomeWhy expenditure = income
In every transaction,the buyer’s expenditurebecomes the seller’s income.Thus, the sum of allexpenditure equalsthe sum of all income.
 
In every transaction,In every transaction,the buyer’s expenditurethe buyer’s expenditurebecomes the seller’s income.becomes the seller’s income.Thus, the sum of allThus, the sum of allexpenditure equalsexpenditure equalsthe sum of all income.the sum of all income.
 
2
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 3
Value addedValue added
definition: A firm’s
value added
isthe value of its outputminusthe value of the intermediate goodsthe firm used to produce that output.
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 4
Exercise:Exercise:
((
Problem 2, p.38 Problem 2, p.38 
))
 A farmer grows a bushel of wheatand sells it to a miller for $1.00.
The miller turns the wheat into flourand sells it to a baker for $3.00.
The baker uses the flour to make a loaf of bread and sells it to an engineer for $6.00.
The engineer eats the bread.
Compute 
 –
value added at each stage of production 
 –
GDP 
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 5
Final goods, value added, and GDPFinal goods, value added, and GDP
GDP = value of final goods produced= sum of value added at all stagesof production
The value of the final goods already includesthe value of the intermediate goods,so including intermediate goods in GDPwould be double-counting.
 
3
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 6
Consumption (Consumption (
CC
))
durable goods 
last a long timeex: cars, homeappliances
non-durable goods 
last a short timeex: food, clothing
services 
work done forconsumersex: dry cleaning,air travel.
def: the value of all goodsand services bought byhouseholds. Includes:
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 7
U.S. Consumption, 2001U.S. Consumption, 2001
 $ billions% of GDPConsumption
 
$7,064.5 69.2%Durables 858.3 8.4Nondurables 2,055.1 20.1Services 4,151.1 40.7$ billions% of GDPConsumption
 
$7,064.5 69.2%Durables 858.3 8.4Nondurables 2,055.1 20.1Services 4,151.1 40.7
CHAPTER 2CHAPTER 2
The Data of MacroeconomicsThe Data of Macroeconomics
slide 8
Investment (Investment (
II
))
def1: spending on [the factor of production] capital.def2: spending on goods bought for future use.Includes:
business fixed investment 
spending on plant and equipment that firms willuse to produce other goods & services
residential fixed investment 
spending on housing units by consumers andlandlords
inventory investment 
the change in the value of all firms’ inventories

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