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Printable Handouts
Navigable Slide Index
- Introduction
- Previously…
- Growth in what?
- Wealth and income
- GDP, GNP and GNI
- NDP, NNP and NNI
- GDP rankings
- GDP per capita rankings
- Measurement approaches
- Expenditure approach
- Income approach
- Calculation of nominal GDP in a 2-good economy
- Calculation of real GDP
- Price indexes
- Price index calculation
- United States GDP deflators for sSelect years
- Conversion from nominal to real GDP (1)
- Conversion from nominal to real GDP (2)
This material is restricted to subscribers.
Topics Covered
- Economic growth
- Measures of output
- Gross domestic progress (GDP)
- Measurement approaches: Expenditure and Income
- Price Indexes
- Nominal and Real GDP
Talk Citation
Torras, M. (2020, January 30). Measuring economic progress: income accounting [Video file]. In The Business & Management Collection, Henry Stewart Talks. Retrieved December 6, 2023, from https://hstalks.com/bm/4147/.Export Citation (RIS)
Publication History
Other Talks in the Series: Introduction to Macroeconomics
Transcript
Please wait while the transcript is being prepared...
0:00
Hi, my name is Mariano Torras.
I'm Professor of Economics at Adelphi University in New York.
We are going to be doing a lecture series on macroeconomics.
0:12
In the last lecture,
we briefly mentioned the notion of economic growth which has
historically been understood to represent progress over time.
But now, it's time to be more specific.
What exactly do we want to be growing?
0:29
Economists track the growth over time in overall economic output,
meaning the total output of goods and services.
We want economic output to grow because we believe this improves our standard of living.
There are a number of ways of measuring output,
and we will get to a few of them here.
But first, remember our discussion of productive factors from the last lecture?
It is such factors namely labor, capital, and land,
as well as the raw materials from the land that generate economic output.
1:05
So it is helpful to think of the total amount of factors that a country has as its wealth
and the total output or product from its factors as its income.
We naturally want our national wealth to grow over time,
but if our income or output grows each year,
then this will help our national wealth grow too.
Here is a key point: any country must decide how much of its output should be consumed,
that is, devoted to consumer items like apparel,
food, or electronics, and how much should be invested.
From the standpoint of a nation,
what we mean by investment is producing more productive factors.
In other words, increasing our wealth.
Consumption, in contrast, does not add to a nation's wealth.