1 / 21

Introduction to macroeconomics and national income accounting

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:

yitro
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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Introduction to macroeconomics and national income accounting

  2. 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.

  3. JOIN KHALID AZIZ • Crash Classes of ICMAP • Stage 1. Fundamentals of Financial Accounting • Stage 2. Cost Accounting • In Just 20 Classes.

  4. 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.

  5. 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

  6. 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

  7. Inflation in the UK, 1950-99 Source: Economic Trends Annual Supplement, Labour Market Trends

  8. Inflation in selected European countries

  9. Inflation in UK, USA and Germany

  10. Unemployment in the UK, 1950-99 Source: Economic Trends Annual Supplement, Labour Market Trends

  11. Unemploymentin selected European countries

  12. Unemploymentin UK, USA and Germany

  13. Economic growthin UK, USA and Germany

  14. I C + I C S Households Firms Y The circular flow of income, expenditure and output

  15. 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

  16. 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.

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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.

More Related