Principles of macroeconomics

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Principles of macroeconomics

Principles of MacroeconomicsModule GuideK CHANDRA SAKARANTable of ContentsChapter 1.Measuring the Size of the Economy.................................

Principles of macroeconomics .................7Learning Outcomes.............................................................................7Introduction.........................

.........................................................8Gross Domestic Product!GDP)................................................................. Principles of macroeconomics

.10Computing the Real GDP and Nominal GDP.......................................................10GDP deflator and the inflation rate.................

Principles of macroeconomics

.........................................15Real GDP and Nominal GDP Growth Rate.........................................................16Real GDP Per

Principles of MacroeconomicsModule GuideK CHANDRA SAKARANTable of ContentsChapter 1.Measuring the Size of the Economy.................................

Principles of macroeconomics ..........................17Gross National Product(GNP)................................................................17Net National Product(NNP)....

..............................................................17National Income at Factor CostfNI).................................................... Principles of macroeconomics

.....18What are Counted in the GDP and Not Included in the GDP......................................19The Importance of Measuring GDP.................

Principles of macroeconomics

.............................................19Limitations of GDP as a measure of living standards..........................................21Chapter

Principles of MacroeconomicsModule GuideK CHANDRA SAKARANTable of ContentsChapter 1.Measuring the Size of the Economy.................................

Principles of macroeconomics ............................23Introduction.................................................................................23Measuring the Cost of Liv

ing.................................................................24Cost of Basket.................................................................. Principles of macroeconomics

...........24Consumer Price Index(CPI)..................................................................25Computing CPI...............................

Principles of macroeconomics

...............................................25Inflation Rate.............................................................................25Limitati

Principles of MacroeconomicsModule GuideK CHANDRA SAKARANTable of ContentsChapter 1.Measuring the Size of the Economy.................................

Principles of macroeconomics ..............................27CPI versus GDP deflator......................................................................27Correcting Economic Var

iables for the Effects of Inflation...................................28The Importance of CPI......................................................... Principles of macroeconomics

...............29Real interest rate...........................................................................30Indexation............................

Principles of macroeconomics

.......................................................30Chapter 3Production and Growth.............................................................31

Principles of MacroeconomicsModule GuideK CHANDRA SAKARANTable of ContentsChapter 1.Measuring the Size of the Economy.................................