CM Culture Économique PDF

**CM culture économique** 13/09/2024 **I - DEFINING AND MEASURING MACROECONIMIC AGGREGATES** To aggregate = calculation/compilatio that take into account great variety of pieces of date **The objects of study of macroeconomics** (microeconomics = = study of how indviduals/households/firms/gov m...

**CM culture économique** 13/09/2024 **I - DEFINING AND MEASURING MACROECONIMIC AGGREGATES** To aggregate = calculation/compilatio that take into account great variety of pieces of date **The objects of study of macroeconomics** (microeconomics = = study of how indviduals/households/firms/gov make choices and how these choices affect prices/allocations of specific goods/services /**smaller scale**) Macroeconomics = study of € aggregate + large scale € phenomenon **National accounting** = complex calculation of all inputs/outputs primary used to calculate Gross Domestic Product (GDP) = representing the aggregate measure of a nation\'s System of National Accounts (SNA) = the internationally agreed standard set of recommendation on how **National income accounts / production = expenditure = income** (all the same result =\> prod = exp = income) **Circular flaws** = concept that explains equivalency between prod/exp/income resources are going to firms then to households (et inversem^nt^) in a harmonious/constant way **Gross domestic product (GPD)** = amounts the total market value of the **final** goods/services produced in country/during given period of time only takes into account on the ended product (ex : voiture finie/ x moteur/peinture/sieges...) 1. **National income accounts / production (1^st^ method)** = represents goods/services produced by firms/companies that intended to be sold to households Production-based = lists the market value added by each domestic firms in production process 2. **National income accounts / expenditure (2^nd^ method)** Expenditure-based national income accounts = measure purchases of goods/services produced in **GDP equatio : Y = C+ I + G + X -- M** ( C : consumption/market value of consumption of goods/services bought/to be bought by domestic households (x que matériel/peut être assurrance) includes all consumption expenditures except residential consumption I : investment/ market value of new physical capital bought by domestic households/firms physical capital =\> representation of variety of factories/offices/equipment/residencies that are G : government/ market value of all goods/services purchased by gov (police cars...) x include transport payments/ interests X : exports/ market value of all domestically (ds pays/régio en questio) produced goods/services that are sold to households/firms/gov in foreign countries and purchased by domestic housholds/companies /gov I : imports/ market value of all goods/services produced in foreign countries 3. **National income accounts / income (3^rd^ method)** - Labor income = wages (huge prop)/worker health insurance/pentio and retirement benefits - Capital income = dividends paid to shareholders/interests paid to landers/earnings retained by corporation/rent payments/benefits of living in your own house **What is not calculated by GDP ?** - Physical capital depreciation = (physical capital : all facilities (equipments/buildings/offices) - Net domestic product / NDP = calcultatio that would take into account physical capital depreciation - Home production = home grown product/home improvement (ex : cultivate things in your garden/cleaning...) - Underground € = crime revenue/activity (ex : drugs...) or any non-declared revenue/labour - Negative externalities = (externality = consequence of choice of € agent that affects an other € **Gross domestic Product (GDP) VS Gross national product (GNP)** = measure/value of aggregate € activity BUT includes only production value created by resident of particular country market value of goods/services produced within a country\'s borders during a specified time/including both residents\' /visitors\' production. **x** include home produc = consists of non-market transactions that **x** involve monetary exchange = calculated as sum of labor income (wages/salaries) and capital income (profits/rents) demonstrating how income from all sources contributes to economic output. Production of French citizens/in France = contributes to French GNP/GDP **Does GDP buy happiness ?** **x** always guaranty of all satisfaction level on average **BUT** often seems correlated (according to data) / some exceptions (explained by inequalities/lack of welfare services/war/€ crisis/crimes...) Bhutan/Gross national product :. sustainable/equitabla socio-€ dev. good governance/equality before the law. preservation/promotion free resilient culture. ecological sustainability **Real VS Nominal GDP** = uses prices from reference year that may be diff from the year in which quantity of goods/services were produced = total market value of production using current prices to determine the value per unit produced (production of computer = adding value of computer) Real GDP growth in 2016 = (real GDP in 2016 -- real GDP in 2015) / real GDP in 2015 **The GDP Deflator** = (nominal GDP / real GDP) x 100 \% = indicator of how much prices increased this year compared to another year Percentage change in GDP deflator in 2016 = (GDP deflator in 2016 -- GDP deflator **The Consumer Price Index** Index = more focused outlook of what is being produced CPI = (cost of buying particular basket of consumer goods using target year prices / cost of buying Basket of consumer goods = depends on the country (ex: more rice **+** less bread in China) =\> CPI and deflator = both use target prices (nominator) /reference year prices (denominator) differences :. deflator look at everything produced (ex: constructions, space rockets...). CPI = more accurate (how changes of price influence normal people) **Inflation** Inflation rate in 2015 = (price index in 2015 -- price index in 2014) / price index in 2014 **Adjusting Nominal Variables** Adjust nominal variable = need to know how much 1 dollar is compared to today need to be calculated *. equilibrium : a situation in which **no agent** will **have negative consequence by** changing his* *. optimization : to do something as good as it possible* **II - DEFINING AND MEASURING MACROECONIMIC AGGREGATES** **Aggregate incomes** Measuring differences in GDP / capita (person) GDP per capita = GDP / total pop **Inequality in GDP per capita** Purchasing power parity (PPP / parité pouvoir d'achat) = constructs cost of representative basket of commodities in each country/adjusts GDP so that 1 dollar in each country can purchase this representative basket **Big Mac Index** = informal way to look at diff/highlighting some currencies **GDP per worker** = divide GDP per amount of active worker (young pop w low GDP) Corelatio between life expectancy/GDP per capita **Human capital** = represents every worker (teachers/experts...) takes into account quantity of workers + their qualification + how well distribution of work force/allocatio **Physical capital** = any good (equipments/tools...)/ buildings /structures used for production important for country **Technology capital** = set of devices (instruments) and practices that determined how efficiently an € uses its labor/capital R&D = Research and Development = wide range of activities to produce new scientific research/ideas/private labs... application of scientific research/ideas in term of € dev **Aggregate production function** = calculation taking into account 3 factors (human/physical/technology capital) =\> Y = A x F (K,H) *(voir diapo)* Law of diminishing returns = states that marginal contribution of factor of production to GDP decreases law of diminishing marginal product = when we add something **III -- ECONOMIC GROWTH** = refers to increase of real GDP per capita in an €