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Economics
Unit 12.1A: Money and financial institutions
Macroeconomic indicators
Макроэкономические показатели
Viktor Ni, NIS 2013
Lesson objective
• Show awareness of key macroeconomic indicators:
GDP;
• GNP;
• NNP;
• HDI;
• inflation rate;
• unemployment rate; and
• trade position
Gross domestic product (GDP)
Human Development Index (HDI)
GNP (Gross-National Product)
Inflation rate
Net national product (NNP)
Unemployment rate
Questions
1. What is it?
2. Who is it used by?
3. Why is it important?
4. How do we calculate it?
5. What does it mean?
Site:
• Economim.weebly.com
Part 1
GDP
Gross domestic product (GDP)
• the market value of all final goods and
services produced within a country in a given
period of time
Gross domestic product (GDP)
“GDP Is the Market Value . . .”
– GDP adds together many different kinds of products
into a single measure of the value of economic activity
through market prices.
“. . . of All . . .”
– It includes all items produced in the economy and sold
legally in markets.
– excludes most items produced and sold illicitly (drags)
“. . . Final . . .”
– When International Paper makes paper, which
Hallmark then uses to make a greeting card, the
paper is called an intermediate good, and the card is
called a final good. Incorrectly to count the paper
twice.
“. . . Goods and Services . . .”
– GDP includes both tangible goods (food, clothing, cars) and
intangible services (haircuts, housecleaning, doctor
visits)
“. . . Produced . . .”
– GDP includes goods and services currently produced. It
does not include transactions involving items produced in
the past.
“. . . Within a Country . . .”
– GDP measures the value of production within the
geographic confines of a country. When a Canadian citizen
works temporarily in the United States, her production is
part of U.S. GDP.
– When an American citizen owns a factory in Haiti, the
production at his factory is NOT part of U.S. GDP. (It is part
of Haiti’s GDP.) Thus, items are included in a nation’s GDP if
they are produced domestically, regardless of the
nationality of the producer.
“. . . In a Given Period of Time.”
- Usually, that interval is a year or a quarter (three
months)
- The GDP data reported in the news are always
seasonally adjusted.
Quick Quiz
• Which contributes more to GDP—the
production of a pound of hamburger or the
production of a pound of caviar? Why?
http://quizlet.com/coolgirl7496/folders/mankiw
• A pound of caviar contributes more to GDP
because it costs more than a pound of
hamburger. The contribution to GDP is
measured by market value and the price of a
pound of caviar is much higher than the price
of a pound of hamburger.
Answer
Formula of GDP
• GDP is divided into four components:
consumption (C), investment (I), government
purchases (G), and net exports (NX):
Y = C + I + G + NX.
Where to include:
“Purchases of new housing”?
Y = C + I + G + NX
•
•
•
•
consumption (C)
investment (I)
government purchases (G)
net exports (NX) (E-M)
Answer
• Consumption is spending by households on
goods and services, with the exception of
purchases of new housing.
• Investment - spending on capital equipment,
inventories, and structures, including
household purchases of new housing
• Government purchases (government consumption
expenditure and gross investment) spending on goods
and services by local, state, and federal governments
Counted:
– The salary of an Army general or a schoolteacher
NOT Counted:
– Social Security benefit to a person who is elderly or an
unemployment insurance benefit to a worker who was
recently laid off (transfer payments)
• Because GDP is intended to measure income from,
and expenditure on, the production of goods and
services, transfer payments are not counted as part of
government purchases.
• Net exports - spending on domestically produced
goods by foreigners (exports) minus spending on
foreign goods by domestic residents (imports)
• For example, suppose that a household buys a $30,000
car from Volvo, the Swedish carmaker. That transaction
increases consumption by $30,000 because car
purchases are part of consumer spending.
• It also reduces net exports by $30,000 because the car
is an import.
• In other words, net exports include goods and services
produced abroad (with a minus sign) because these
goods and services are included in consumption,
investment, and government purchases (with a plus
sign).
• The Components of U.S. GDP
Table 1 shows the composition of U.S. GDP in 2009. In this year, the GDP of the
United States was over $14 trillion. Dividing this number by the 2009 U.S. population
of 307 million yields GDP per person (sometimes called GDP per capita). In 2009 the
income and expenditure of the average American was $46,372.
• Consumption made up 71 percent of GDP, or $32,823 per person. Investment
was $5,278 per person. Government purchases were $9,540 per person. Net
exports were –$1,269 per person. This number is negative because Americans
spent more on foreign goods than foreigners spent on American goods.
These data come from the Bureau of Economic Analysis, the part of the U.S. Department of
Commerce that produces the national income accounts. You can find more recent data on GDP at
its website, http://www.bea.gov.
Part 2
GNP
Gross national product (GNP)
• is the total income earned by a nation’s permanent
residents (called nationals).
• It differs from GDP by including income that our
citizens earn abroad and excluding income that
foreigners earn here.
• For example, when a Canadian citizen works
temporarily in the United States, her production is part
of U.S. GDP, but it is not part of U.S. GNP. (It is part of
Canada’s GNP.)
• For most countries, including the United States,
domestic residents are responsible for most
domestic production, so GDP and GNP are quite close.
Соотношение ВВП и ВНП:
• Соотношение ВВП и ВНП описывается
следующей формулой:
• ВНП = ВВП + Δ,
• где
• Δ = (первичные доходы, полученные
резидентами за пределами экономической
территории страны) — (первичные доходы,
полученные нерезидентами на экономической
территории страны); то есть сальдо обмена
первичными доходами с остальным миром.
Кто включит в GDP,
а кто в GNP?
Кто включит в GDP,
а кто в GNP?
∆
Мы зарабатываем по
программе “Work and Travel”
Иностранные учителя
зарабатывают в НИШ
Интерпретация взаимосвязи ВВП и
ВНП
• Если ВНП (ВНД) > ВВП — значит, жители
данной страны получают за границей
больше, чем иностранцы зарабатывают в
данной стране.
• Если ВНП (ВНД) < ВВП — значит,
иностранцы зарабатывают в данной стране
больше, чем жители данной страны
получают за границей.
Net national product (NNP)
• Net national product (NNP) is the total income of
a nation’s residents (GNP) minus losses from
depreciation.
• Depreciation is the wear and tear on the
economy’s stock of equipment and structures,
such as trucks rusting and computers becoming
obsolete.
• In the national income accounts prepared by
the Department of Commerce, depreciation is
called the “consumption of fixed capital.”
Part 3
NNP and NDP
• Net national product (NNP) refers to gross
national product (GNP), i.e. the total market
value of all final goods and services produced
by the factors of production of a country or
other polity during a given time period,
minus depreciation.[1]
• Similarly, net domestic product(NDP)
corresponds to gross domestic product
(GDP) minus depreciation.[2]
• Depreciation describes the devaluation of
fixed capital through wear and tear associated
with its use in productive activities.
http://en.wikipedia.org/wiki/Net_national_pro
duct
• In national accounting, net national product
(NNP) and net domestic product (NDP) are
given by the two following formulas:
NNP = GNP - Depreciation
NDP = GDP - Depreciation
Methods of depreciation
Straight-line method:
Рассчитайте норму
амортизационных
отчислений (Residual Value)
(линейным способом):
Стоимость ноутбука: $1000
Срок службы: 5 лет
Амортизация основных фондов
• это сумма амортизационных отчислений
на полное восстановление элементов
основных производственных фондов.
Определяется она исходя из стоимости
основных фондов и норм амортизационных
отчислений.
Рассчитайте: GDP (ВВП) (по доходам
и расходам), NNP (ЧНП)
Показатели
Сумма млрд. у.е.
Косвенные налоги
45
Государственные закупки
60
Потребление домохозяйств
361
Валовая прибыль корпораций
103
Чистые инвестиции
81
Трансферты (субвенции)
35
Амортизация
100
Заработная плата
202
Доход от собственности
146
Экспорт
42
Импорт
48
• СУБВЕНЦИЯ - вид денежного пособия
государства местным органам власти.В
отличие от дотации СУБВЕНЦИЯ
предоставляется
на финансирование определенного
мероприятия и подлежит возврату в случае
нарушения ее целевого использования.
Part 4
HDI
• The Human Development Index (HDI) is a
composite statistic of life expectancy,
education, and income indices used to rank
countries into four tiers of human
development.
HDI
1. Life Expectancy Index (LEI)
2. Education Index (EI)
• 2.1 Mean Years of Schooling
Index (MYSI) [7]
• 2.2 Expected Years of
Schooling Index (EYSI) [8]
3. Income Index (II)
Homework
• Найдите данные по Казахстану и позицию
в рейтинге стран:
– GDP
– GNP
– NNP
– HDI
– Unemployment
Answers:
Про Work and Travel:
• Америка в GDP
• Казахстан в GNP
Иностранные учителя:
• Америка в GNP
• Казахстан в ВВП
Next lesson
Real versus
Nominal GDP