Exploring the Components of Macroeconomics.pptx

Exploring the Components of Macroeconomics

1. Time：202X.XX Exploring the Components of Macroeconomics

2. C ontents Unemployment 2. 1. Gross Domestic Product (GDP) Inflation 3.

3. 01 Gross Domestic Product (GDP)

4. 02 01 Nominal GDP measures a country's economic output without adjusting for inflation, while Real GDP accounts for inflation, providing a more accurate economic assessment. Nominal vs. Real GDP GDP can be calculated through three primary methodsthe production approach, the income approach, and the expenditure approach, each offering different perspectives on economic activity. GDP Calculation Methods Definition and Measurement

5. 01 Consumption represents the total value of all goods and services consumed by households, the largest component driving economic growth. Consumption 02 Investment includes spending on business capital, residential construction, and inventories, reflecting future economic potential. Investment 03 Government spending encompasses all government expenditures on goods and services, a vital contributor to economic stability and growth. Government Spending 04 Net exports are calculated as the difference between a country's exports and imports, indicating the economic impact of international trade. Net Exports Components of GDP

6. 02 Unemployment

7. Frictional unemployment occurs when workers are temporarily between jobs or are searching for new ones. This is a natural phenomenon in a dynamic economy. Frictional Unemployment Structural unemployment arises when there is a mismatch between workers' skills and the demands of the job market. This often occurs due to technological changes or shifts in the economy. Structural Unemployment Cyclical unemployment is linked to the fluctuations in the business cycle. During economic downturns, demand for goods and services decreases, leading to job losses. Cyclical Unemployment Types of Unemployment

8. Unemployment Rate The unemployment rate is the percentage of the labor force that is unemployed and actively seeking work. It is a key indicator of economic health. Labor Force Participation Rate The labor force participation rate measures the percentage of the working- age population that is either employed or actively looking for work. It reflects the active portion of an economy's labor force. Measuring Unemployment

9. 03 Inflation

10. Demand- pull inflation occurs when the demand for goods and services exceeds their supply, causing prices to increase. This often happens in a growing economy. Demand-Pull Inflation Cost- push inflation happens when the costs of production increase, leading producers to raise prices to maintain profit margins. Examples include rising wages or raw material costs. Cost-Push Inflation Definition and Causes

11. The Consumer Price Index (CPI) measures the average change in prices paid by consumers for a basket of goods and services over time. It is a key indicator of inflation. Consumer Price Index (CPI) The Producer Price Index (PPI) tracks changes in the selling prices received by domestic producers for their output. It can signal future consumer price changes. Producer Price Index (PPI) Core inflation excludes certain volatile items such as food and energy prices to provide a clearer picture of the long- term trend in inflation affecting the economy. Core Inflation Measuring Inflation

12. Time：202X.XX Thanks