1、Unit 5Text:Gross Domestic Product（国内生产总值）1.Key words2.Calculating gross domestic product3.GDP and GNP4.GDP and NDP5.Real and nominal GDP6.Growth and GDP7.Problems of GDP measurement8.QuestionsGDPGNPNDPfinal goodsper capita GDPintermediate goodsdouble countingvalue addedmarket priceindirect taxesfact
2、or costnational income accountsnominal GDPlabor forcefactor of productionenvironmental pollution and degradationadjusted GNP series2.1 Definition of gross domestic product2.2 Subtleties in the calculation of GDPGross Domestic Product(GDP)is the value of all final goods and services produced in the c
3、ountry within a given period.The output of each of these is valued at its market price,and values are added together to get GDP.2.2.1 Final goods and value added2.2.2 Current output2.2.3 Market pricesGDP is the value of final goods and services produced.The insistence on final goods and services is
4、simply to make sure that we do not double-count.In practice,double counting is avoided by working with value added.At each state of the manufacture of a good,only the value added to the good at that stage of manufacture is counted as part of GDP.GDP consists of the value of output currently produced
5、.GDP values goods at market prices.Valuation at market prices is a principle that is not uniformly applied,because there are some components of GDP that are difficult to value.ThereGNP is the value of final goods and services produced by domestically owned factors of production within a given period
6、.The difference between GDP and GNP arises because some of the output produced within a given country is made by factors of production owned abroad.The difference between GDP and GNP corresponds to the net income earned by foreigners.When GDP exceeds GNP,residents of a given country are earning less
7、 abroad than foreigners are earning in that country.Net domestic product(NDP)is equal to GDP minus the capital consumption allowance,a measure of depreciation.NDP comes closer to measuring the net amount of goods produced in the country in a given periodit is the total value of production minus the
8、value of the amount of capital used up in producing that output.Real GDP measures changes in physical output in the economy between different time periods by valuing all goods produced in the two periods at the same prices,or in constant dollars.Nominal GDP measures the value of output in a given pe
9、riod in the prices of that period,or,as it is sometimes put,in current dollars.Changes in nominal GDP that result from price changes do not tell us anything about the performance of the economy in producing goods and services.That is why we use real rather than nominal GDP as the basic measure for c
10、omparing output in different years.6.1 Definition of growth rate of the economy 6.2 Reasons for GDP changeThe growth rate of the economy is the rate at which the GDP is increasing.On average,most economies grow by a few percentage points per year over long periods.Available amount of resources in th
11、e economy changes.The principal resources are capital and labor.Efficiency of factors of production may change.Efficiency improvements are called productivity increases.Some outputs are poorly measured because they are not traded in the market.Some activities measured as adding to GDP in fact repres
12、ent the use of resources to avoid or contain“bads”such as crime or risks to national security.Similarly,the accounts do not subtract anything for environmental pollution and degradation.This issue is particularly important in developing countries.It is difficult to account correctly for improvements in the quality of goods.(1)Explain the definition of GDP.(2)What is the difference between GDP and GNP?Is one a better measure of income/output than the other?Why?(3)What is the difference between Nominal GDP and Real GDP?(4)Discuss the problems of GDP measurement.
