Beruflich Dokumente
Kultur Dokumente
Reading
1. This set of slides
2. From the text material :
Chapter 2 page 21-23
Chapter 3 page 45-48
Measuring
the economys performance
GDP
= GROSS DOMESTIC PRODUCT
= value of all final goods and services (at current market
prices) produced within the economy at the current year
GNP
= GROSS NATIONAL PRODUCT
= value of all final goods and services (at current market
prices) produced by domestically owned factors at home or
abroad at the current year
= GDP + income earned by domestically owned factors abroad
income earned at home by foreign owned factors
= GDP + net factor income from abroad
See
https://rbi.org.in/Scripts/PublicationsView.aspx?id=16445
https://
rbi.org.in/Scripts/AnnualPublications.aspx?head=Handbook%20of
%20Statistics%20on%20Indian%20Economy
Exercise
Exercise
Exercise
2.
3.
Circular flow of
Income
Wages w, rent r,
profit , interest
payments i etc.
Labour, land,
Capital etc.
Household
s
Firms
Goods and
services
Consumption expenditure
on goods and services C
So Aggregate Income
= Wages + Profits + Interest
Payments + Rents
Households
1. The
Households
sector earns
income
=W+P+I+R
Firms
Rest of
the world
Households
2.
Consumptio
n 1. The
Expenditure
Households
C sector earns
income
Rest of
the world
7.
Export
Earnin
8.
Import
Bill M
good 1, good 2.
price P1,
price P2,
price P3 .. And so on.
m = number of goods
Financial
Institutions
4. S =
400
6. I =
400
Government
3. T =
5. G =
200
200
Households
2. C =
600
1. Y = 1200
Firms
Rest of
8. M = the world
300
7. X=
300
Forms of leakage
Financial
Institutions
4. S =
400
Y = C+S+T =
1200
6. I =
400
Government
3. T =
5. G =
200
200
Households
2. C =
600
1. Y = 1200
Firms
C+I+G+X-M =
1100
Rest of
8. M = the world
400
7. X=
300
Y = C+S+T =
1200
6. I =
200
Government
3. T =
5. G =
200
200
Households
2. C =
600
1. Y = 1200
Firms
C+I+G+X-M =
1000
Rest of
8. M = the world
300
7. X=
300
Financial
Institutions
4. S =
400
Y = C+S+T =
1200
6. I =
400
Government
3. T =
5. G =
200
400
Firms
Households
2. C =
600
1. Y = 1200
C+I+G+X-M =
1400
Rest of
8. M = the world
300
7. X=
300