ECSENOMICS Chapter 21 Measuring Economic Activity McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 21 Measuring Economic Activity
ECSENOMICS Gross Domestic Product Can Be measured Either as(a)a Flow of Final Products or Equivalently, as(b)a Flow of Costs T153 Figure 21-1 Circular Flow of Macroeconomic Activity Consumption purchases a Final goods and servces (bread, computers, haircuts, etc. Producers households. (businesses) ernment,,.) (b) Productive services (labor, land, e:c, Wages, rents, profit, etc. McGraw-Hilllrwin Source: U.S. Department of Commerce. Shaded regions are major economic downturns
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Gross Domestic Product Can Be Measured Either as (a) a Flow of Final Products or, Equivalently, as (b) a Flow of Costs T-153 Figure 21-1 Source: U.S. Department of Commerce. Shaded regions are major economic downturns
ECSENOMICS Nominal gdP grows Faster than t Real GDP Because of Price Inflation T154 Figure 21-2 14.000 Real GDP Nominal GDP 19581996019497019739801985199019952000 McGraw-Hilllrwin Source: U.S. Department of Commerce
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Nominal GDP Grows Faster than Real GDP Because of Price Inflation T-154 Figure 21-2 Source: U.S. Department of Commerce
ECSENOMICS Share of Consumption in National Output Has risen recently 1-155 igure 21-3 Fi 370 三 40山u 1930193519401945195019551960196519701975198019851901995 Year McGraw-Hilllrwin Source: U.S. Department of Commerce
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Share of Consumption in National Output Has Risen Recently T-155 Figure 21-3 Source: U.S. Department of Commerce
ECSENOMICS Starting with GDP, We Can Calculate National Income (Nn) and Disposable Personal Income (Dn) T156 Figure 21-4 From GDP to National Income to Disposable Income Net exports Ind arest Lca Investment Net busines saving Malignat Ciress domestis produet National incae aGI>P) McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Starting with GDP, We Can Calculate National Income (NI) and Disposable Personal Income (DI) T-156 Figure 21-4
