Introduction to macroeconomics and national income accounting
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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:

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Introduction to macroeconomics and national income accounting

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Introduction to macroeconomics and national income accounting

Introduction to macroeconomics and national income accounting


Join khalid aziz

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 aziz1

JOIN KHALID AZIZ

  • Crash Classes of ICMAP

  • Stage 1. Fundamentals of Financial Accounting

  • Stage 2. Cost Accounting

  • In Just 20 Classes.


Macroeconomics is

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

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

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

Inflation in the UK, 1950-99

Source: Economic Trends Annual Supplement, Labour Market Trends


Inflation in selected european countries

Inflation in selected European countries


Inflation in uk usa and germany

Inflation in UK, USA and Germany


Unemployment in the uk 1950 99

Unemployment in the UK, 1950-99

Source: Economic Trends Annual Supplement, Labour Market Trends


Unemployment in selected european countries

Unemploymentin selected European countries


Unemployment in uk usa and germany

Unemploymentin UK, USA and Germany


Economic growth in uk usa and germany

Economic growthin UK, USA and Germany


The circular flow of income expenditure and output

I

C + I

C

S

Households

Firms

Y

The circular flow of income, expenditure and output


Government in the circular flow

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

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

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

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


National income accounting a summary

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

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 aziz2

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.


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