hnd_经济学outcome_2

DiagramofcircularflowofincomeenterpriseInjectionsandwithdraws•Knowdefinitions,examples,andinfluenceonthecircularflowofincome.•Thereare3setsofinjectionsandwithdrawalswhichcanalterthecircularflowofincomeinaneconomy.•Injection(J)ismoneyenteringtheflow.InjectionsincludeInvestment,governmentspendingandExports.•Withdrawal(W)ismoneyleavingtheflow.Withdrawalsincludesaving,taxationandimports.Investment•Ineconomics,investmentisbuyingandproducingcapitalgoodswhicharenotconsumedbutaretobeusedforfutureproduction.•Examplesincludetangibles(suchasbuildingarailroadorfactory)andintangibles(suchasayearofschoolingoron-the-jobtraining),etc.•Moreinvestmentmeansthatmoreproductionandmoreemployment,andmoreincomecirculateandthuseconomicactivityisincreased.Saving•Ineconomics,personalsavinghasbeendefinedaspersonaldisposableincomeminuspersonalconsumptionexpenditure.•Forexample,householdsdepositmoneyintobanksorotherfinancialinstitutions,orjustretainmoneyintreasuries.•Ifacountrysavestoomuchofitsincomethisiswithdrawnfromthecircularflowandtheflowwilldecrease.Thismeansthatlessincomecirculatesandeconomicactivityisreduced.GovernmentSpending(G)andTaxation(T)•Governmenttaxesboththehouseholdandbusiness,sothattaxes(T)arewithdraw.•Example:directtax(incometax)andindirecttax(salestaxes).Indetail,valueaddedtax(VAT),Capitalgainstax,Corporationtax,EnvironmentAffectingTax,Inheritancetax,Propertytax,etc.•Increasingtaxeswilldecreasedisposableincome,thuslessincomecirculatesandeconomicactivityisreduced.•Thegovernmentpurchasesgoodsandservicesfromthebusiness,andgivestransferpayments,sothatgovernmentspending(G)isinjection.•(G)includes:investmentdirectlyintotheeconomyintheformofgrants,businessallowances,investmentinroads,hospitals,housing,investmentinnationalisedindustries,andtheWelfareState,pensions,unemploymentbenefitsandothertransferpayments(TP).•Increasinginvestmentandspendingbygovernmentwillincreaseemploymentandproduction,thusmoreincomecirculatesandeconomicactivitywillbeincreased.Exports(E)andImports(M)•Exports:goodsandservicesareproducedinonecountryandsoldabroad.Thepaymentforthemwillreturntothefirmsinthiscountry.Thus,itisaninjection.•Example:•Thisincreasesthecircularflowandcreatesmoreeconomicactivityintheeconomy.•Imports:goodsandserviceswhichareboughtfromothercountriesandconstituteawithdrawfromthecircularflowofincomeandentertheflowofincomeofanothercountry.•Example:•Thisdecreasesthecircularflowandcauseslesseconomicactivityintheeconomy.DifficultiesofmeasuringNationalIncome1.Arbitrarydefinitionofproduction(whatshouldandshouldnotbemeasured).2.Valueofservicerenderedbyconsumerdurablegoods.3.InadequateInformation.4.Dangerofdoublecounting.5.Problemsinmakingcomparisonsovertimeandbetweencountries.Arbitraryexclusion•AnumberofitemsareexcludedinthemeasurementofNI,eventhoughtheyoftendorepresentrealproductiveeffort.•UndergroundactivitiesIllegalactivitiesUnreported(butlegal)activities•Non-marketactivitiesServicesofhomemakersDIYproductionVolunteerservicesOtherdifficultiesofmeasuringNI•“Notionalrent”ofowner-occupiedhousesiscountedinNIlikerealrentofpropertyforletting,andhencepreventsGDPfalling.•Thereisdangerofdoublecountingsuchastaxes,transferpayments,stockappreciation,andinputbyothers.•Inadequateinformation.ThesourcesfromwhichdataareobtainedwerenotspecificallydesignedtoprovideinformationforNIcalculations.Inaddition,capitalconsumptionoffixedassetsisthemajorproblem,becausethereisnoaccuratefigureforrealdepreciation.•Problemsinmakingcomparisonsovertimeandbetweencountries.Howtocomparegrowthratesofdifferentcountries•NIgrowthrate(%)country200020012002A3.52.61.8B2.54.53.1C1.92.53.2WeaknessesofNIasindicationofstandardofliving•NIisthenearestindicationofwelfare.ButNIcannotbeacceptedsolelyonitsfacevalue.Thefollowingqualificationsmustbemade:•Theriseingenerallevelofprice:inflation.•Populationlevelchanges.•Theproportionofconsumerandproducergoodsmaychange.•ChangeinNImaybeduetosurplusofexportsoverimports.•Unfairdistributionofthewealth.Onlyasmallminorityofwealthypeopleconsumetheextragoods.•Paidservicesmaybecomemore.•Environmentalproblems.TocompareStandardsofLivingofdifferentcountriesWhenusedforinternationalcomparison,GNPstatisticsaresubjecttoqualificationsinadditiontothosementionedabove.•Exchangeratesmaynotreflectaccuratelytheinternalpurchasingpowerofcurrencies.•Tastesandneedsvarybetweencountries.•TheproportionofGNPspentondefenseandsocialservicesvaries.•Countriesvaryinaverageworkingweek,proportionofwomenworkers,numberofjobsdonebythemselves,accuracyoftaxreturns.Multiplier•AnychangeinthelevelofinjectionsorwithdrawalswillbringaboutachangeinthelevelofNationalIncome.•ThechangeinNationalIncomewillberelativelygreaterthantheinitialchange.Thisisknownasthe“Multiplier”effect.•Anotherdefinition:theadditionalshiftsinaggregatedemandthatresultwhenexpansionaryfiscalpolicyincreasesincomeandtherebyincreasesconsumerspending.Marginalpropensitytoconsumeandsave•MarginalPropensitytoConsume(MPC):ratioofthechangeinconsumptiontothecorrespondingchangeinincome.•Marginalpropensitytosave(MPS):ratioofthechangeinsavingtoco