AP宏观经济学 第二单元 经济计量与经济目标 知识点总结课件 AP Macroeconomics Unit 2 Summary.ppt

1、MACROECONOMICS1 Macroeconomics is the study of the large economy as a whole.It is the study of the big picture.Instead of analyzing one consumer,we analyze everyone.Instead of one business we study all businesses.What is Macroeconomics?Why study the whole economy?The field of macroeconomics was born

2、 during the Great Depression.Government didnt understand how to fix a depressed economy with 25%unemployment.Macro was created to:1.Measure the health of the whole economy.2.Guide government policies to fix problems.2Macro-Unit 2:Macroeconomics Measures3Shu Yu Wang1.Promote Economic Growth2.Limit Un

3、employment3.Keep Prices Stable(Limit Inflation)In this unit we will analyze how each of these are measured.For all countries there are three major economic goals:4Goal#1Promote Economic GrowthHow does a country measureeconomic growth?5How do we know how well the economy is doing?Economists collect s

4、tatistics on production,income,investment,and savings.This is called national income accounting.The most important measure of growth is GDP.Gross Domestic Product(GDP)is the dollar value of all final goods and services produced within a countrys borders in one year.Dollar value-GDP is measured in do

5、llars.Final Goods-GDP does not include the value of intermediate goods.Intermediate goods are goods used in the production of final goods and services.One Year-GDP measures annual economic performance.6Just like calculating your own income,GDP measures how well the U.S.is doing financially.How do yo

6、u use GDP?1.Compare to previous years(Is there growth?)2.Compare policy changes(Did a new policy work?)3.Compare to other countries(Are we better off?)What does GDP tell us?*CIA 2007 Estimate7How can you measure growth from year to year?%Change in GDP=Year 2-Year 1Year 1X 100Mordors GDP in 2007 was$

7、4000Mordors GDP in 2008 was$5000What is the%Change in GDP?Transylvanias GDP in 2007 was$2,000Transylvanias GDP in 2008 was$2,100What is the%Change in GDP?82.Nonproduction TransactionsFinancial Transactions(nothing produced)Ex:Stocks,bonds,Real estateUsed GoodsEx:Old cars,used clothes What is NOT inc

8、luded in GDP?1.Intermediate Goods No Multiple Counting,Only Final GoodsEX:Price of finished car,not the radio,tire,etc.3.Non-Market(Illegal)Activities Ex:Illegal drugs,unpaid work9Calculating GDPTwo Ways of calculating GDP:1.Expenditures Approach-Add up all the spending on final goods and services p

9、roduced in a given year.2.Income Approach-Add up all the income that resulted from selling all final goods and services produced in a given year.Both ways generate the same amount since every dollar spent is a dollar of income.10Four components of GDP:1.Consumer SpendingEx:$5 Little Caesars Pizza2.I

10、nvestments-When businesses put money back into their own business.Ex:Machinery or tools3.Government SpendingEx:Bombs or tanks,NOT social security4.Net Exports-Exports(X)Imports(M)Ex:Value of 3 Ford Focuses minus 2 HondasGDP=C+I+G+XnExpenditures Approach11Calculating GDP12Included or not Included in

11、GDP?For each situation,identify if it is included in GDP the identify the category C,I,G,or Xn1.$10.00 for movie tickets2.$5M Increase in defense expenditures3.$45 for used economics textbook4.Ford makes new$2M factory5.$20K Toyota made in Mexico6.$10K Profit from selling stocks7.$15K car made in US

12、,sold in Canada8.$10K Tuition to attend college9.$120 Social Security payment to Bob10.Farmer purchases new$100K tractor131.$10.00 for movie tickets2.$5M Increase in defense expendituresX$45 for used economics textbook4.Ford makes new$2M factoryX$20K Toyota made in MexicoX$10K Profit from selling st

13、ocks7.$15K car made in US,sold in Canada8.$10K Tuition to attend collegeX$120 Social Security payment to Bob10.Farmer purchases new$100K tractorGDP=$7,125,010 14Included or not Included in GDP?Nominal GDP vs.Real GDP15How can you figure out which is the most popular movie of all time?What is the pro

14、blem with this method?Nominal Box Office Receipts16How can you figure out which is the most popular movie of all time?Real Box Office Receipts(adjusted for inflation)The Problem with GDPIf a countrys GDP increased from$4 Billion to$5 Billion in one year,is the country experiencing economic growth?Di

15、d the country definitely produce 25%more products?What is Inflation?A rising general level of pricesEX:If apples are the only thing being producedYear 1:10 apples at$1 each;GDP=$10 Year 2:10 apples x$1.25;GDP=$12.50 GDP is rising,but country is worse off!18Real vs.Nominal GDPNominal GDP is GDP measu

16、red in current prices.It does not account for inflation from year to year.Real GDP is GDP expressed in constant,or unchanging,dollars.Real GDP adjusts for inflation.REAL GDP IS THE BEST MEASURE OF ECONOMIC GROWTH!19Real vs.Nominal GDP Example200810 cars at$15,000 each=$150,00010 trucks at$20,000 eac

17、h=$200,000Nominal GDP=$350,000200910 cars at$16,000 each=$160,00010 trucks at$21,000 each=$210,000Nominal GDP=$370,000The GDP in year 2008 shows the dollar value of all final goods produced.The nominal GDP in year 2009 is higher which suggests that the economy is improving.But how much is the REAL G

18、DP?How do you get it?Use 2008 Prices.The Real GDP for 2009 is the same as 2008 after we adjust for inflation.200910 cars at$15,000 each=$150,00010 trucks at$20,000 each=$200,000REAL GDP=$350,00020Real GDP“deflates”nominal GDP by adjusting for inflation in terms of a base year prices.21Does GDP accur

19、ately measure standard of living?Standard of living(or quality of life)can be measured,in part,by how well the economy is doingBut it needs to be adjusted to reflect the size of the nations population.Real GDP per capita(per person)Real GDP per capita is real GDP divided by the total population.It i

20、dentifies on average how many products each person makes.Real GDP per capita is the best measure of a nations standard of living.22List the top 5 most populated countries23GDP Per Capita24Why do some countries have higher GDPs than others?Productivity(TECHN)1.Technology2.Economic SystemExample#1:Cap

21、italist countries have historically had more economic growth.Capital(like robots)can produce more than peopleCountries with more capital,can produce more products than countries without a lot of capital.3.CapitalEx:Capital stock is machinery,tools,and man-made resources.Example#1:India has over a bi

22、llion people(human resources)but relatively few capital resources and therefore a lower GDP than the U.S.Example#2:Japan has few natural resources but a high GDP4.Human Capital(Knowledge)5.Natural ResourcesEx:Syria has a lower GDP because it is mostly desert.THE BUSINESS CYCLE26THE BUSINESS CYCLEThe

23、 national economy fluctuates resulting in periods of boom and bust.A Recession is 6 month period of decline in output,income,employment,and trade.(If really badthen depression)InflationUnemploymentFull employment27The Business CycleWhy does the economy fluctuate?Retailer and Producers send misleadin

24、g information about consumer demand.Advances in tech,productivity,or resources.Outside influences(wars,supply shocks,panic).Macroeconomics measures these fluctuations and guides policies to keep the economy stable.The government has the responsibility to:Promote long-term growth.Prevent unemployment

25、(resulting from a bust).Prevent inflation(resulting form a boom).Who cares?282930What is Economic Growth?1.An increase in real GDP over time2.An increase in real GDP per capita over time(usually used to determine standard of living)Why is economic growth the goal of every society?Provides better goo

26、ds and servicesIncreases wages and standard of livingAllows more leisure timeEconomy can better meet wants31Goal#2Limit Unemployment32The Unemployment rate The percent of people in the labor force who want a job but are not working.Who is in the Labor Force?Above 16 years oldAble and willing to work

27、Not institutionalized(jails,hospitals)Not in military,in school full time,or retiredWhy is a stay at home mom not unemployed?What is Unemployment?Unemploymentrate#unemployed#in labor forcex100=33Three Types of Unemployment343 Types of Unemployment#1.Frictional Unemployment“Temporarily unemployed”or

28、being between jobs.Individuals are qualified workers with transferable skills but they arent working.Examples:High school or college graduates looking for jobs.Individuals that were fired and are looking for a better job.YouYou rereFired!Fired!35Seasonal UnemploymentThis is a specific type of fricti

29、onal unemployment which is due to time of year and the nature of the job.These jobs will come backExamples:Professional Santa Clause ImpersonatorsConstruction workers in Michigan363 Types of Unemployment#2.Structural UnemploymentChanges in the structure of the labor force make some skills obsolete.W

30、orkers DO NOT have transferable skills and these jobs will never come back.Workers must learn new skills to get a job.The permanent loss of these jobs is called“creative destruction.”(Why?)Examples:VCR repairmenCarriage makers373 Types of Unemployment Technological UnemploymentType of structural une

31、mployment where automation and machinery replace workers causing unemploymentExamples:Auto assemblers fired as robots take over productionProducers of Capital Goods(tractors)fire assemblers 383 Types of Unemployment#3 Cyclical UnemploymentUnemployment that results from economic downturns(recessions)

32、.As demand for goods and services falls,demand for labor falls and workers are fired.Examples:Steel workers laid off during recessions.Restaurant owners fire waiters after months of poor sales due to recession.This This sucks!sucks!393 Types of Unemployment Two of the of the three types of unemploym

33、ent are unavoidable:Frictional unemploymentStructural unemploymentTogether they make up the natural rate of unemployment(NRU).We are at full employment if we have only the natural rate of unemployment.This is the normal amount of unemployment that we SHOULD have.The number of jobs seekers equals the number of jobs vacancies.The Natural Rate an Full Employment40In other wordsFull employment means N