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8 THE DATA OF MACROECONOMICS

23 Measuring a Nation’s Income

Measuring a Nation’s Income ,[object Object],[object Object],[object Object],[object Object],[object Object]

Measuring a Nation’s Income ,[object Object],[object Object],[object Object],[object Object]

THE ECONOMY’S INCOME AND EXPENDITURE ,[object Object]

THE ECONOMY’S INCOME AND EXPENDITURE ,[object Object],[object Object],[object Object]

THE MEASUREMENT OF GROSS DOMESTIC PRODUCT ,[object Object],[object Object]

THE MEASUREMENT OF GROSS DOMESTIC PRODUCT ,[object Object]

Figure 1 The Circular-Flow Diagram Spending Revenue Income = Flow of inputs and outputs = Flow of dollars Copyright © 2004 South-Western Goods and services bought Goods and services sold Labor, land, and capital Factors of production Wages, rent, and profit FIRMS ,[object Object],goods and services ,[object Object],of production ,[object Object],goods and services ,[object Object],of production HOUSEHOLDS ,[object Object],[object Object],MARKETS FOR FACTORS OF PRODUCTION ,[object Object],[object Object],MARKETS FOR GOODS AND SERVICES

THE MEASUREMENT OF GROSS DOMESTIC PRODUCT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

THE MEASUREMENT OF GROSS DOMESTIC PRODUCT ,[object Object],[object Object],[object Object],[object Object]

THE COMPONENTS OF GDP ,[object Object]

THE COMPONENTS OF GDP ,[object Object],[object Object],[object Object]

THE COMPONENTS OF GDP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

THE COMPONENTS OF GDP ,[object Object],[object Object],[object Object],[object Object]

THE COMPONENTS OF GDP ,[object Object],[object Object],[object Object],[object Object],[object Object]

GDP and Its Components (2001) Consumption 69% Government Purchases 18% Net Exports -3 % Investment 16%

REAL VERSUS NOMINAL GDP ,[object Object],[object Object]

REAL VERSUS NOMINAL GDP ,[object Object]

The GDP Deflator ,[object Object],[object Object]

The GDP Deflator ,[object Object]

GDP AND ECONOMIC WELL-BEING ,[object Object],[object Object]

GDP AND ECONOMIC WELL-BEING ,[object Object],[object Object],[object Object],[object Object]

Summary ,[object Object],[object Object]

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