Mankiw Chapter 10

Chapter 10  National Income

Employment is dependent on the health of the national economy.  The GDP applies to the economy of the nation.  People inside the system do not change the GDP directly.  GDP is more important in a discussion of international trade, and it affects workers and producers relative to that.  It is a group number for the nation, and it is used to show the health of a whole nation.  Products that move from intermediate status (paper) to final (a card) increase the value of the good and influence GDP.Being paid of giving a haircut sees another transfer that increases GDP.  When things are produced outside the country, it does not raise GDP in this country.  Other things are also considered in the overall well-being of a nation.  GDP is more interested in the final product that goes to market.  Imports, exports also manipulate the numbers

Consumer spending affects the overall GDP, even for goods manufactured outside the country.  Some trends deflate the value of goods.  GDP does not measure all the positives within a country.  :Poorer countries have much lower GDPs.

The chapter helps bring into perspective the complex relationships between the things we produce and sell, and what we do as individuals.