National Income: Where t comes From and where丨 t Goes A large income is the best recipe for happiness I ever heard of. Jane Austen The most important macroeconomic variable is gross domestic product(GDP) As we have seen, GDP measures both a nations total output of goods and ser- vices and its total income. To appreciate the significance of GDP, one need only take a quick look at international data: compared with their poorer counterparts, nations with a high level of gDP per person have everything from better child-

1. GDP measures both the total income of everyone in the economy and the total expendi- ture on the economy's output of goods and services. GDP can measure two things at once because both are really the same thing: for an economy as a whole, income must al expenditure. As the circular flow diagram in the text illustrates, these are alter- native, equivalent ways of measuring the flow of dollars in the economy

The Open Economy No nation was ever ruined by tr Benjamin Franklin Even if you never leave your home town, you are an active participant in a global conomy. When you go to the grocery store, for instance, you might choose be- tween apples grown locally and grapes grown in Chile. When you make a de posit into your local bank, the bank might lend those funds to your next-door

The question of growth is nothing new but new disguise for an age-old issue, one which has always intrigued and preoccupied economics: the present versus the future. -James Tobin If you have ever spoken with your grandparents about what their lives were like when they were young, most likely you learned an important lesson over about economics: material standards of have improved substantially over form time for most families in most countries

Economic growth‖ Is there some action a government of India could take that would lead the Indian economy to grow like Indonesia's or Egypt's? If so, what, exactly? If not, what is it about the \nature of India that makes it so? The conse- quences for human welfare involved in questions like these are simply stag- gering: Once one starts to think about them, it is hard to think about Robert E. Lucas, Jr

Introduction to Economic Fluctuations The modern world regards business cycles much as the ancient Egyptians regarded the overflowing of the Nile. The phenomenon recurs at intervals, it is of great importance to everyone, and natural causes of it are not in sight -John Bates Clark, 1898 Economic fluctuations present a recurring problem for economists and policy-

When conducting monetary and fiscal policy, policymakers often look be- yond their own country's borders Even if domestic prosperity is their sole ob jective, it is necessary for them to consider the rest of the world. The international flow of goods and services and the international flow of capital can affect an economy in profound ways. Policymakers ignore these effects at In this chapter we extend our analysis of aggregate demand to include inter- national trade and finance. The model developed in this chapter, called the Mundell-Fleming model, is an open-economy version of the IS-LM model. Both models stress the interaction between the goods market and the money market. Both models assume that the price level is fixed and then show what

There is ahvays a temporary tradeoff befween inflation and unemploy from inflation per se, but from unanticipated inflation, which generally means, from a rising rate of inflation Milton friedman Most economists analyze short-run fluctuations in aggregate income and the price level using the model of aggregate demand and aggregate supply. In the IS-LM modek hapters, we examined aggregate demand in some detail. The IS-LM model-together with its open-economy cousin the Mundell-Fleming model-shows how changes in monetary and fiscal policy and shocks to the money and goods markets shift the aggregate demand curve. In this chapter

5-1.The Goods Market and the IS Relation 5-2: Financial Market and the LM Relation 5-3: The iS-LM- Model: Exercise 5-4: Using a Policy Mix 5-5: Adding Dynamics 5-6: Does the IS-LM Model Actually Capture What Happens in the Economy?

1、对国民收入的基本认识 国民收入是用来衡量一个国家在一定时期经济活动业 绩的数量指标。具体说，国民收入是用来衡量一个国家在一 定时期投入的生产资源生产出来的产品和劳务的价值或由此 形成的收入的一个数量指标