Introduction to macroeconomics and national income accounting
Download
1 / 21

Introduction to macroeconomics and national income accounting - PowerPoint PPT Presentation


  • 78 Views
  • Uploaded on
  • Presentation posted in: General

Introduction to macroeconomics and national income accounting. JOIN KHALID AZIZ. ECONOMICS OF ICMAP, ICAP, MA-ECONOMICS, B.COM. FINANCIAL ACCOUNTING OF ICMAP STAGE 1,3,4 ICAP MODULE B, B.COM, BBA, MBA & PIPFA. COST ACCOUNTING OF ICMAP STAGE 2,3 ICAP MODULE D, BBA, MBA & PIPFA. CONTACT:

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha

Download Presentation

Introduction to macroeconomics and national income accounting

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Introduction to macroeconomics and national income accounting


JOIN KHALID AZIZ

  • ECONOMICS OF ICMAP, ICAP, MA-ECONOMICS, B.COM.

  • FINANCIAL ACCOUNTING OF ICMAP STAGE 1,3,4 ICAP MODULE B, B.COM, BBA, MBA & PIPFA.

  • COST ACCOUNTING OF ICMAP STAGE 2,3 ICAP MODULE D, BBA, MBA & PIPFA.

  • CONTACT:

  • 0322-3385752

  • 0312-2302870

  • R-1173,ALNOOR SOCIETY, BLOCK 19,F.B.AREA, KARACHI, PAKISTAN.


JOIN KHALID AZIZ

  • Crash Classes of ICMAP

  • Stage 1. Fundamentals of Financial Accounting

  • Stage 2. Cost Accounting

  • In Just 20 Classes.


Macroeconomics is ...

  • the study of the economy as a whole

  • it deals with broad aggregates

  • but uses the same style of thinking about economic issues as in microeconomics.


Some key issues in macroeconomics

  • Inflation

    • the rate of change of the general price level

  • Unemployment

    • a measure of the number of people looking for work, but who are without jobs

  • Output

    • real gross national product (GNP) measures total income of an economy

      • it is closely related to the economy's total output


More key issues in macroeconomics

  • Economic growth

    • increases in real GNP, an indication of the expansion of the economy’s total output

  • Macroeconomic policy

    • a variety of policy measures used by the government to affect the overall performance of the economy


Inflation in the UK, 1950-99

Source: Economic Trends Annual Supplement, Labour Market Trends


Inflation in selected European countries


Inflation in UK, USA and Germany


Unemployment in the UK, 1950-99

Source: Economic Trends Annual Supplement, Labour Market Trends


Unemploymentin selected European countries


Unemploymentin UK, USA and Germany


Economic growthin UK, USA and Germany


I

C + I

C

S

Households

Firms

Y

The circular flow of income, expenditure and output


I

C + I + G

C + I + G - Te

C

S

G

Te

Households

Government

Firms

B - Td

Y + B - Td

Y

Government in the circular flow


Adding the foreign sector

  • To incorporate the foreign sector into the circular flow

  • we must recognize that residents of a country will buy imports from abroad

  • and that domestic firms will sell (export) goods and services abroad.


GDP and GNP

  • Gross domestic product (GDP)

    • measures the output produced by factors of production located in the domestic economy

  • Gross national product (GNP)

    • measures the total income earned by domestic citizens

  • GNP = GDP + net income from abroad


Three measures of national output

  • Expenditure

    • the sum of expenditures in the economy

    • Y = C + I + G + X - Z

  • Income

    • the sum of incomes paid for factor services

    • wages, profits, etc.

  • Output

    • the sum of output (value added) produced in the economy


NYA

NYA

Deprec'n

GDP

at

market

prices

G

NNP

at basic

prices

Indirect

taxes

I

National

income

Profits,

rents

X - Z

Self-

employment

C

Wages

and

salaries

National income accounting: a summary

GNP

(and

GNI)

at

market

prices


What GNP does and does not measure

  • Some care is needed:

    • to distinguish between real and nominal measurements

    • to take account of population changes

    • to remember that GNP is not a comprehensive measure of everything that contributes to economic welfare


JOIN KHALID AZIZ

  • ECONOMICS OF ICMAP, ICAP, MA-ECONOMICS, B.COM.

  • FINANCIAL ACCOUNTING OF ICMAP STAGE 1,3,4 ICAP MODULE B, B.COM, BBA, MBA & PIPFA.

  • COST ACCOUNTING OF ICMAP STAGE 2,3 ICAP MODULE D, BBA, MBA & PIPFA.

  • CONTACT:

  • 0322-3385752

  • 0312-2302870

  • R-1173,ALNOOR SOCIETY, BLOCK 19,F.B.AREA, KARACHI, PAKISTAN.


ad
  • Login