investment tools economics macroeconomic analysis

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1、四、InvestmentTools:Economics:MacroeconomicAnalysis1.A:PreliminaryReading:TakingtheNation'sEconomicPulsea:Explainthetwoapproachestomeasuringgrossdomesticproduct(GDP)andcalculateGDPusingeachapproach.Theexpenditureapproachisademand-basedconceptmeasuredbysummingpersonalconsumption,grossprivat

2、einvestment,governmentconsumptionandgrossinvestment,andnetexportsofgoodsandservices.Resourcecost/incomeapproach:Theresourcecost/incomeapproachisasupplyorproductionorientedapproachandmeasuresGDPbysummingthefollowingcomponentsemployeecompensation,proprietors'income,rents,corporateprofits,i

3、nterestincome,indirectbusinesstaxes,depreciation,andnetincomeofforeigners.b:DistinguishbetweenGDPandgrossnationalproduct(GNP).GNPisthetotalmarketvalueofallfinalgoodsandservicesproducedbythecitizensofacountrynomatterwheretheyareresiding.Priorto1991GNPwasusedtomeasureUSproduction.GNPandGDP

4、arecloselyrelatedconcepts.GDPisameasureoftheoutputthatisproduceddomestically,whileGNPisameasureoftheoutputproducedbythenationalsofacountryregardlessofwheretheylive.GNPisGDPPLUSincomeearnedbycitizensfromtheirworkandinvestmentsabroad,LESStheincomeearnedbyforeignersfromtheirworkandinvestmen

5、tswithinthecountry.GDPmeasuresoutputwithinthebordersofacountryregardlessofthecitizenshipoftheproducer.GNPmeasurestheoutputofthecountry’snationalsregardlessofwheretheylive.c:ExplainthedifferencebetweenrealandnominalGDP.AnimportantuseofGDPistocomparethelevelofproductionovertime. However,wh

6、ennominalGDP(GDPmeasuredintermsofcurrentprices)changesfromoneperiodtothenext,itreflectsbothchangesinproductionandpricechanges. Therefore,economistsattempttofilterouttheimpactofGDPbycalculatingGDPmeasuredintermsofpricesfromsomebaseyear. ThismeasureiscalledrealGDP. ChangesinrealGDPcorrespo

7、ndtorealoractualchangesinproduction.  SincenominalGDPismeasuredwithcurrentpricesandrealGDPismeasuredrelativetothepricelevelinsomebaseyear,weneedapriceindextoindicatetherelativepricechangebetweenperiods.d:DistinguishbetweentheGDPdeflatorandtheconsumerpriceindex.TheGDPDefla