Principles of Macroeconomics: Chapter 10 - N. Gregory Mankiw

Chapter 10 Measuring a Nations income has objectives: How gross domestic product (GDP) is defined and calculated, the breakdown of GDP into its four major components, the distinction between real GDP and nominal GDP, whether GDP is a good measure of economic well-being.
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Principles of Macroeconomics: Chapter 10 - N. Gregory MankiwChapter 10Principles of Macroeconomics, N. Gregory Mankiw (Fifth Edition)Objectives How gross domestic product (GDP) is defined andcalculated. The breakdown of GDP into its four majorcomponents. The distinction between real GDP and nominal GDP. Whether GDP is a good measure of economic wellbeing.Micro vs. Macro Microeconomics= the study of how individual households and firms make decisions and interact with one another in markets. Macroeconomics= the study of the economy as a whole.The economy’s income and expenditure Gross Domestic Product (GDP) measures = total income of everyone in the economy. = total expenditure on the economy’s output ofgoods and services. For the economy as a wholeINCOME = EXPENDITURE(every dollar a buyer spends is a dollar of income for theseller)GDP equals the total amount spent by households in the market for goods and services. It also equals the total wages, rent, and profit paid by firms in the markets for the factors of production.