Chapter 1: Essential macroeconomic aggregates

(1)

Reading: whole chapter, except ”Going further” section.

Exercises: 3,4,6.

Some key points:

Basic notions: output, intermediate consumption, value added GDP as the sum of values added

Three fundamental equations Three ways to measure GDP GDP versus GNI

Gross versus net approach

(2)

Reading: introduction, sections 1-5.

Exercises: 1-3 Some key points

Calculating and interpreting aggregate volumes Laspeyres volume index

Constant-price values

Hedonic price index (see smartphone price example: Full-HD versus 4K version)

(3)

Exercises: 3,4,6 Some key points

Production decision tree Imputed rents

Imputation: measuring production for own use Measuring non-market output

Illegal and underground economy Classification of activities

(4)

Exercises: 2 Some key points:

Distinguishing between final and intermediate uses Components of final demand

What is included in particular components of final demand

(5)

Exercises: 1-2 Some key points:

What is a household?

Households as consumers and unincorporated enterprises Three key indicators of the household account

Sequence of accounts

creating based on descriptive examples creating based on Eurostat data

(6)

Exercises: 2 Some key points:

The scope of general government 4 principle indicators of the GG sector Major types of taxes

Major types of government expenditure

(7)

Reading: only section 2 (Welfare measures beyond national accounts) Some key points:

Production flows outside national accounts Non-production flows

Differences between goods Capital stocks and sustainability