PPT-Spending, Income, and GDP

Chapter 15 McGrawHillIrwin Copyright 2015 by McGrawHill Education Asia All rights reserved Learning Objectives Explain how economists define and measure an economys output Apply the expenditure method for measuring GDP to analyze economic activity. 1.. Disposable income is the money one has after paying taxes (the money one has to live on).. Marginal Propensity to Consume. The increase in household savings when disposable income rises by $1. Marginal Propensity to Save. The value of the output of goods and services produced in an economy over a period of time. Increases in National Income mean that the economy has grown – economic growth!. It is assumed that a . richer nation . Aggregate Expenditures. The total amount spent on final goods and services. . AE consists of (C) consumption + (. Ig. ) Gross Investment. . AE = C + . Ig. Equilibrium GDP. The level at which the total quantity of goods produced equals the total quantity purchased. . Overview and Key Findings of a New Report from. The Commonwealth Fund Commission on a. High Performance Health System. Cathy Schoen, Senior Vice President and Stuart Guterman, Vice President and Executive Director of the Commission . This web quiz may appear as two pages on tablets and laptops.. I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. 10a – The Spending Multiplier. . Data in legend are for 2014.. Source: . OECD Health Data 2016. . Data are . for current spending only, and . exclude . spending on capital formation of health care providers. . Exhibit 1. Percent. Health Care Spending as a Percentage of GDP, 1980–2014. The . open economy circular flow model. The . markets. National . account aggregates and conversions. The . multiplier:. Definition . of multiplier effect. Explanation . of the multiplier process aided with . 3-1. WHY HAVE A GAME PLAN?. 3-2. WHY HAVE A SPENDING PLAN?. Live Within your Income. Reduce Financial Stress . Maintain a Good Credit History. Realize Personal Goals. 3-. 3. ELEMENTS OF PERSONAL FINANCIAL SUCCESS. in the Short Run. Learning Objectives. Identify the key assumptions of the basic Keynesian . model. Discuss the determination of planned investment and . planned . aggregate expenditure. Analyze . how an economy reaches short-run equilibrium in the basic Keynesian . Macroeconomics: Data and Issues. Learning Objectives. Explain how economist define and measure an economy's output. Use the expenditure method for measuring GDP to analyze economic activity. Define and compute nominal GDP and real GDP. a growth path after the slowdown followingthe financial crisisFigure 1 Annual growth of health expenditure and GDP in real terms 2000-17Source OECD Health Statistics 2018-4-202468Health spendingGDPHea I recommend that you view it as one page by clicking on the open book icon at the bottom of the page.. 7a – Measuring . GDP. Define GDP. Problems with using GDP as a Measure of Social. Welfare (Standard of Living). TOPIC 1. NI is the value of all goods and services produced in the economy in a year.. It measures the economic performance of a country.. WHAT IS NATIONAL INCOME?. This can be done in 3 ways:. GROSS DOMESTIC PRODUCT (GDP). Gross Domestic Product (GDP). “GDP is the market value of all final goods and services produces within a country in a given period of time”. Y = C + I + G + NX. Y = GDP. C – Consumption. I – Investment.