Chapter2
National-Income Accounting:
Gross Domestic Product and the Price Level
Macroeconomics
Chapter 2
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Nominal GDP

the dollar (or euro, etc.) value of all
the goods and services that an
economy produces during a
specified period, such as a year.
Macroeconomics
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Nominal GDP



Flow variable - it measures the dollar
amount of goods produced per unit of
time, such as a year.
GDP in current dollars
Services by government: measured by
costs
Macroeconomics
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Macroeconomics
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Real GDP

Calculating Real GDP

GDP in constant dollars
Multiply each year’s quantity of output
of each good by the price of the good
in a base year.

Chain-weighted real GDP

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Calculations

(nominal GDP)/(implicit price level)
= real GDP
or

implicit price level
= (nominal GDP)/(real GDP)
Macroeconomics
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GDP as a Welfare Measure
GDP does not:
 Consider change in income
distribution
 Include non-market goods.
 Assign value to leisure.
 Consider environmental damage.
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Question:

考虑给某政府的建议：如何在短时间内提
高GDP，以便有益于政绩宣传？
注意：不能做假账。

对于大家痛恨的政绩工程，你有什么办法
去制止？
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GDP by Expenditure
Y = C + I + G + NX
Gross domestic
Product (GDP)
is composed
of
Investment
spending by
businesses and
households
Consumption
spending by
households
Government
purchases of goods
and services
Net exports
or net foreign
demand
This is the called the national income accounts identity.
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Macroeconomics
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Measuring GDP by Income

National Income – Income earned by
factors of production.
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Measuring GDP by Income

正视现实：
中国的国民收入中间，劳动者的收入占比
逐年递减。
Macroeconomics
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Relationship between GDP and
National Income
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National Income by Sector
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Prices



Consumer Price Index (CPI)
Producer Price Index (PPI)
Problem of CPI(PPI)
substitution
quality
new production
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Question:

What is the difference between
implicit GDP deflator & CPI?



全部商品 --- 消费品
中国生产 --- 中国消费
权重： 例如一场霜冻摧毁了全部柑橘
(substitution)
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