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会计学MeasuringaNation’sIncomeMeasuringaNation’sIncomeTHEECONOMY’SINCOMEANDEXPENDITURETHEECONOMY’SINCOMEANDEXPENDITUREFigure1TheCircular-FlowDiagramTHEMEASUREMENTOFGROSSDOMESTICPRODUCTTHEMEASUREMENTOFGROSSDOMESTICPRODUCTTHEMEASUREMENTOFGROSSDOMESTICPRODUCTTHEMEASUREMENTOFGROSSDOMESTICPRODUCTTHECOMPONENTSOFGDPTHECOMPONENTSOFGDPTHECOMPONENTSOFGDPTHECOMPONENTSOFGDPTable1GDPandItsComponentsGDPandItsComponents(2004)REALVERSUSNOMINALGDPREALVERSUSNOMINALGDPTable2RealandNominalGDPTable2RealandNominalGDPTable2RealandNominalGDPTheGDPDeflatorTheGDPDeflatorTheGDPDeflatorFigure2RealGDPintheUnitedStatesISGDPAGOODMEASUREOFECONOMICWELL-BEING?GDPANDECONOMICWELL-BEINGTable3GDPandtheQualityofLifeBecauseeverytransactionhasabuyerandaseller,thetotalexpenditureintheeconomymustequalthetotalincomeintheeconomy. Grossdomesticproduct(GDP)measuresaneconomy’stotalexpenditureonnewlyproducedgoodsandservicesandthetotalincomeearnedfromtheproductionofthesegoodsandservices. GDPisthemarketvalueofallfinalgoodsandservicesproducedwithinacountryinagivenperiodoftime. GDPisdividedamongfourcomponentsofexpenditure:consumption,investment,governmentpurchases,andnetexports. NominalGDPusescurrentpricestovaluetheeconomy’sproduction.RealGDPusesconstantbase-yearpricestovaluetheeconomy’sproductionofgoodsandservices. TheGDPdeflator—calculatedfromtheratioofnominaltorealGDP—measuresthelevelofpricesintheeconomy. GDPisagoodmeasureofeconomicwell-beingbecausepeoplepreferhighertolowerincomes. Itisnotaperfectmeasureofwell-beingbecausesomethings,suchasleisuretimeandacleanenvironment,arenotmeasuredbyGDP. Dollarfiguresfromdifferentpointsintimedonotrepresentavalidcomparisonofpurchasingpower. Variouslawsandprivatecontractsusepriceindexestocorrectfortheeffectsofinflation. Therealinterestrateequalsthenominalinterestrateminustherateofinflation. MeasuringtheCostofLivingTHECONSUMERPRICEINDEXTHECONSUMERPRICEINDEXHowtheConsumerPriceIndexIsCalculatedHowtheConsumerPriceIndexIsCalculatedHowtheConsumerPriceIndexIsCalculatedHowtheConsumerPriceI