tailieunhanh - Lecture Understanding economics (2nd edition): Chapter 9 - Mark Lovewell, Khoa Nguyen

In this chapter you will: Learn about Gross Domestic Product (GDP) and the two approaches to calculating it, consider real GDP and per capita GDP and their possible uses and limitations when comparing living standards in different years or different countries, analyze other economic measures developed from the national income accounts. | Understanding Economics Chapter 9 The Economic Problem Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. 2nd edition by Mark Lovewell and Khoa Nguyen Chapter Objectives In this chapter you will: learn about Gross Domestic Product (GDP) and the two approaches to calculating it consider real GDP and per capita GDP and their possible uses and limitations when comparing living standards in different years or different countries analyze other economic measures developed from the national income accounts Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. National Income Accounts Canada’s national income accounts show the levels of total income and spending in the Canadian economy Among other measures these accounts include Gross Domestic Product (GDP) * Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. Gross Domestic Product GDP is the total dollar value of all | Understanding Economics Chapter 9 The Economic Problem Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. 2nd edition by Mark Lovewell and Khoa Nguyen Chapter Objectives In this chapter you will: learn about Gross Domestic Product (GDP) and the two approaches to calculating it consider real GDP and per capita GDP and their possible uses and limitations when comparing living standards in different years or different countries analyze other economic measures developed from the national income accounts Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. * Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. National Income Accounts Canada’s national income accounts show the levels of total income and spending in the Canadian economy Among other measures these accounts include Gross Domestic Product (GDP) * Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. Gross Domestic Product GDP is the total dollar value of all final goods and services produced in an economy during a particular period GDP is calculated using two approaches the income approach the expenditure approach The GDP identity states that GDP expressed as total income = GDP expressed as total spending * Calculating Gross Domestic Product Figure , Page 215 Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. Product Current Price (P) Annual Product (Q) Total Dollar Value (P x Q) Surgical lasers $1000 3 $3000 Milkshakes 2 1000 2000 GDP = $5000 * Circular Flow in a Simple Economy Figure , Page 216 Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. Economic Resources (natural, capital, and human resources Expenditure Approach Businesses Households Household Incomes (rent, interest, wages and profit) Consumer Spending Consumer Products Resource Markets Product Markets Income Approach * Copyright © 2002 by McGraw-Hill Ryerson Limited. All rights reserved. The Income Approach (a) The income approach