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The Macroeconomic Perspective

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Introduction to the Macroeconomic Perspective

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2

Goals

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3

Frameworks and Policy Tools

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4

Measuring the Size of the Economy

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GDP Measured by Components of Demand

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GDP Measured by What is Produced

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The Problem of Double Counting

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8

Other Ways to Measure the Economy

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9

Key Concepts and Summary

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10

Adjusting Nominal Values to Real Values

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Converting Nominal to Real GDP

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12

Key Concepts and Summary

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Tracking Real GDP Over Time

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14

Key Concepts and Summary

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15

Comparing GDP Among Countries

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Converting Currencies With Exchange Rates

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17

GDP Per Capita

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18

Key Concepts and Summary

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19

Limitations of GDP as a Measure of the Standard of Living

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20

Does a Rise in GDP Overstate or Understate the Rise in the Standard of Living?

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21

GDP is Rough, but Useful

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22

Key Concepts and Summary

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