An Open Economy Framework - PowerPoint PPT Presentation

Loading...

PPT – An Open Economy Framework PowerPoint presentation | free to download - id: 566780-N2M5Y



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

An Open Economy Framework

Description:

An Open Economy Framework Gross ... The Circular Flow of ... Two Approaches to Determining Equilibrium Real Income The Derivation of the IS Schedule The Money Demand ... – PowerPoint PPT presentation

Number of Views:117
Avg rating:3.0/5.0
Slides: 20
Provided by: marque91
Learn more at: http://www.swlearning.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: An Open Economy Framework


1
An Open Economy Framework
2
Gross Domestic Product
  • Economist track the overall or aggregate amount
    of economic activity using gross domestic product
    (GDP)
  • GDP is the market value of all final goods and
    services produced within an economy during a
    given time period.

3
Nominal versus Real
  • Nominal GDP measures the current market value of
    all final goods and services produced within an
    economy during a given time period.
  • Real GDP, in contrast, in a price-adjusted
    measure of aggregate output.
  • Real GDP is calculated by dividing nominal GDP by
    the GDP price deflator.

4
Price Measures
  • The GDP price deflator is a measure of the
    overall price level of an economy.
  • The consumer price index (CPI) is a weighted sum
    of prices of goods and services that the
    government determines a typical consumer
    purchases each year.
  • The producer price index (PPI) is a weighted
    average of the prices of goods and services that
    the government determines a typical business
    receives from selling its products during a given
    year.

5
The Circular Flow of Expenditures
6
Saving, Imports and Consumption
7
Changes in Desired Investment
8
Government Spending and Net Taxes
9
Exports
10
Deriving the Aggregate Expenditures Schedule
11
Two Approaches to Determining Equilibrium Real
Income
12
The Derivation of the IS Schedule
13
The Money Demand Schedule
14
Attaining Equilibrium in the Market for Real
Money Balances
15
The Derivation of the L-M Schedule
16
Changes in the Real Money Supply
17
IS-LM Equilibrium and Disequilibrium
18
The BP Schedule
19
IS-LM Equilibrium and the BP Schedule
About PowerShow.com