Solutions for Macroeconomics, Theory and Applications, 1st Edition Lester (All Chapters included)
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Microeconomics
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Microeconomics
Complete Solutions Manual for Macroeconomics, Theory and Applications, 1st Edition by Robert Lester ; ISBN13: 9780357901779. (Full Chapters included Chapter 1 to 15)....
1. Defining and Measuring GDP.
2. Production Functions.
3. The Solow Model of Economic Growth.
4. Explaining Total Factor Pro...
Macroeconomics,
Theory and Applications
1st Edition by Robert Lester
Complete Chapter Solutions Manual
are included (Ch 1 to 15)
** Immediate Download
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** All Chapters included
,Instructor Manual
Robert Lester, Macroeconomics: Theory and Applications 2024, 9780357723449; Chapter 1:
Defining and Measuring GDP
TABLE OF CONTENTS
Purpose and Perspective of the Chapter .............................................................................................. 2
Chapter Objectives............................................................................................................................... 2
Key Terms ............................................................................................................................................ 2
Chapter Outline ................................................................................................................................... 3
Answers to End of Chapter Questions .................................................................................................. 5
, PURPOSE AND PERSPECTIVE OF THE CHAPTER
The purpose of this chapter is to understand one of the primary macroeconomic variables: gross
domestic product (GDP). GDP measures production within a country and across time. GDP per capita
gives a measure of the average income per person and is used as a proxy for the average standard of
living of a country’s citizens. GDP is not a perfect measure of well-being, but it is correlated with several
quality-of-life variables. Accurate GDP measurements show how production changes over time and
enable cross-country comparisons of production and income. Furthermore, GDP can inform
policymakers and help them make decisions that improve a country’s economic performance.
CHAPTER OBJECTIVES
The following objectives are addressed in this chapter:
1.1 Calculate GDP using the income, expenditure, and value-added approaches.
1.2 Distinguish between real and nominal GDP and calculate the GDP deflator.
1.3 Explain the concept of purchasing power parity and how that affects measured cross-country
income differences.
1.4 List the stylized facts of economic growth.
1.5 Critically evaluate GDP per person as an accurate measure of living standards.
KEY TERMS
Capital good: A machine, piece of equipment, or physical operating space used by a business.
Depreciation: The decline in value of capital goods associated with physical deterioration and
obsolescence.
Durable good: A good that physically persists despite being used. The BEA defines a durable good as a
good with an average useful life of at least three years.
GDP deflator: A country’s nominal GDP divided by its real GDP.
GDP per capita: GDP divided by a country’s population.
GDP per worker: GDP divided by a country's workforce.
Gross domestic product (GDP): The current dollar value of all final goods and services produced in a
country in a year.
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