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Part 8:
THE DATA OF MACROECONOMICS
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Measuring
a Nation’s Income
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23
Micro vs. Macro
• Microeconomics
• the study of how individual households and firms
make decisions and how they interact with one
another in markets.
• Macroeconomics
• the study of the economy as a whole.
• The primary topics involve the causes of long-run
growth and business cycles, and the appropriate role
for government policy in influencing the
performance of the economy
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Macro Variables
Y: national income or GDP
P: price level (cost of living)
π: inflation rate
u: unemployment rate
r: interest rate
主計處網站：
http://www.stat.gov.tw/ct.asp?xItem=15139&ctNode=3565
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The Definition OF GDP
• 國內生產毛額
Gross domestic product (GDP) is a measure
of the income and expenditures of an economy.
• It is the total market value of all final goods and
services produced within a country in a given
period of time.
• 台灣2007年GDP：約12.6兆新台幣
• (台灣資料請參考Ch23.xls)
• GNP ( Gross National Product):國民生產毛額
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The Definition OF GDP
• “GDP is the Market Value . . .”
Output is valued at market prices.
(1) traded in the market
(2) weighted with market prices
• “. . . Of All Final . . .”
(1) records only the value of final goods,
not intermediate goods:
No double counting (不重複計算)
(2) Or Σ(value added)：附加價值的加總
eg, 小麥（$6）麵粉（$10）麵包（$20）
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The Definition OF GDP
• “. . . Goods and Services . . . “
• both tangible goods (food, clothing, cars) and intangible
services (haircuts, housecleaning, doctor visits).
• “. . . Produced . . .”
• currently produced, not transactions involving goods
produced in the past. (No second-hand trade)
• “ . . . Within a Country . . .”
• within the geographic confines of a country. “
• “. . . In a Given Period of Time.”
• within a specific interval of time, usually a year or a quarter
(three months).
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What Is Not Counted in GDP?
GDP includes all items produced in the economy
and sold legally in markets.
• GDP excludes
(1) most items produced and consumed at home.
(2) items produced and sold illicitly (illegal drugs).
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The Measurement of
Income and Expenditure
• For an economy as a whole, income must equal
expenditure because:
• Every dollar of spending by some buyer is a dollar
of income for some seller.
The measurement of GDP:
• 1. Expenditure approach (支出面)
• 2. Income approach (所得面)
• 3. Production approach (產出面)
• illustrated with the circular-flow diagram.
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Figure 23.1 The Circular-Flow Diagram
MARKETS
FOR
GOODS AND SERVICES
•Firms sell
Goods
•Households buy
and services
sold
Revenue
Wages, rent,
and profit
Goods and
services
bought
HOUSEHOLDS
•Buy and consume
goods and services
•Own and sell factors
of production
FIRMS
•Produce and sell
goods and services
•Hire and use factors
of production
Factors of
production
Spending
MARKETS
FOR
FACTORS OF PRODUCTION
•Households sell
•Firms buy
Labor, land,
and capital
Income
= Flow of inputs
and outputs
= Flow of dollars
Copyright
Copyright ©
© 2004
2004 South-Western
South-Western
1. Expenditure Approach:
The Components OF GDP
• GDP (Y) is the sum of
the following expenditures:
•
•
•
•
Consumption (C)
Investment (I)
Government Purchases (G)
Net Exports (NX)=Export(EX)-Import(IM)
Y = C + I + G + NX
=C+I+G+EX-IM
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THE COMPONENTS OF GDP
• Consumption (C):消費
• The spending by households on goods and services,
with the exception of purchases of new housing.
• Investment (I):投資
• The spending on capital equipment, inventories, and
structures, including new housing.
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THE COMPONENTS OF GDP
• Government Purchases (G):政府支出
• The spending on goods and services by
governments.
• Does not include transfer payments
because they are not made in exchange for currently
produced goods or services.
• Net Exports (NX):淨出口
• Exports (EX出口) minus imports(IM進口).
• National Saving: S=Y-C-G (Ch26,32 )
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Taiwan’ GDP (Y) 組成
%
C
I
G
EX
IM
S
歷年平均
56.92
24.07
15.68
44.45
41.12
27.40
1961-1970
62.11
21.84
18.17
21.03
23.15
19.72
1971-1980
52.39
30.41
15.56
46.32
44.68
32.05
1981-1990
51.24
22.81
15.83
53.17
43.05
32.93
1991-2000
58.53
24.43
14.77
47.35
45.07
26.70
2001-2006
62.59
18.77
12.97
61.01
55.37
24.44
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2. Income Approach
• National Income (NI)國民所得=
Wage income + Interest income + Rents + profits
To prove that GDP.=NI:
Revenue = GDP
Costs = Wage + Interest payment + Rents
Profits= Revenue- Costs
= GDP- (Wage + Interest payment + Rents)
So GDP= Wage + Interest income + Rents + Profits
= National Income
實際上GNP=NI+折舊+間接稅(非所得稅)
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Real versus Nominal GDP
• Nominal GDP
values of goods and
services at current
prices. (Y=PtQt)
Y  P Q   Pi Q
t
• Real GDP
values of goods and
services at constant
prices in the base year.
(y=P0Qt):
the measure of real output
t
t
t
i
i
y  P Q   Pi Q
0
t
0
i
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t
i
Table 2 Real and Nominal GDP
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Table 2 Real and Nominal GDP
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Table 23.2 Real and Nominal GDP
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The GDP Deflator (GDP平減指數=P)
• The GDP deflator is calculated as follows:
Nominal GDP
GDP deflator=
100
Real GDP
Pt Qt
= 0 t 100
PQ
  the measure of price change
亦即 P  Y / y
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Y=P*y， P=Y/y ，y=Y/P
• Converting Nominal GDP to Real GDP:
Real GDP20XX
Nominal GDP20XX

100
GDP deflator20XX
亦即 y=Y/P
2007年：名目每人平均GDP為NT$55萬＝16,768美金
實質每人GDP=(550,343/96.14)=572,439 (2001價格)
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Table 23.2 Real and Nominal GDP
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Taiwan: real GDP and real GNP
FIGURE 23.2
Real GNP and Real GDP
16,000,000
14,000,000
Millions NT$
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
1951
1956
1961
1966
1971
1976
1981
1986
1991
1996
2001
Year
real GNP
real GDP
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2006
Taiwan: GDP growth rate
%
nominal GDP real GDP
(Y)
(y)
Inflation rate
(P)
歷年平均
成長率
13.43
7.88
5.13
1951-1960
20.21
8.15
11.08
1961-1970
13.80
9.68
3.76
1971-1980
21.03
9.91
10.33
1981-1990
11.32
8.01
3.09
1991-2000
8.56
6.52
1.91
2001-2007
3.29
3.80
-0.49
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Taiwan: growth rate of
Nominal GDP and Real GDP
FIGURE 23.2b Growth rate of Nominal GDP and Real GDP
45
40
35
Millions NT$
30
25
20
15
10
5
0
-5
1952
1956
1960
1964
1968
1972
1976
1980
1984
1988
1992
1996
2000
2004
Year
Nominal GDP
Real GDP
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GDP and Economic Well-Being
• Real GDP per person （per capita）:
(real GDP/N)
as a measure of standard of living
and as a measure of average productivity
2004年：名目每人平均GDP為NT$47.7萬＝
14,270美金
實質每人GDP=(1,4270/95.33)*100＝14,970美
金(2001價格) 跨時比較
購買力評價＝24,000美金 跨國比較
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GDP and Economic Well-Being
• GDP: not a perfect measure of the happiness or quality
of life.
GDP not count
•
•
•
•
•
The value of leisure.
The value of a clean environment. (綠色國民所得)
The value of nonmarket activities.
Not an indication for income distribution.
2005年，台灣地區平均每戶可支配所得89.5萬元。若可
支配所得按戶數五等分位觀察，最高20％家庭每戶可支
配所得為179.7萬元，最低20％家庭每戶所得29.8萬元，
高低所得差距6.04倍。（主計處）
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Table 23.3 GDP and Quality of Life
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Summary
‧GDP is the market value of all final goods and
services produced within a country in a given
period of time.
• Total expenditure = Total income
• GDP =C+I+G+NX
• Nominal GDP = Y
• Real GDP = y
• The GDP deflator = P =Y/y
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