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IMaF

by Immanuel F.

How can you measure the economic activity and what are the specific key measure for every approach

Product approach:
- measures value added by summing up all final goods and services at markt value
  - key measure: GDP (Gros Domestic Product = BIP)
Income approach:
- measures distttribution of factor income to owners of the factors of production
  - key measure: GNI (Gross National Income = Brutto National Einkommen)
Expenditure approach:
- measures final use of goods and services by spending categories
  - aggregate measure: GNE (goss national Expediture = Bruttonationaleinkaufsvolumen)

How do you calculate GNE

GNE = C + I + G

C: personal consumption

I: private domestic investment

G: government consumption and investment

Name the relation between GNE GDP GNI in

Closed economy
Open economy

Closed economy:
GNE = GDP = GNI
Open economy:
GNE =/= GDP =/= GNI
=> because we must account for cross border flows

Name the different cross border flows In the open economy

How do you calculate the GDP in an open economy and when do you have a trade surplus and when do you have a trade deficit?

How do you calculate the GNI in the open economy

Übersetzung für NFIA > 0: Ein Land verdient mehr, indem es nationale Inputfaktoren im Ausland beschäftigt, als indem es im Inland ausländische Faktoren nutzt und dafür bezahlt

What is the GNDI and how do you calculate it, what is the current account (CA) in this formula?

What does it mean if in the GNDI the CA is > or < 0?

How are the national saving (S) defined?

What is equal to the savings in the closed economy

What’s equal to savings (S) in the open economy?

S = I + CA

Durch umstellen: CA = S - I

How do you calculate the private savings and the government savings

National saving consists of:

Calculate the CA with the private and the government savings, what does it mean if CA < / > 0?

What is the Financial account?

Financial Account (FA): records all cross - border transactions of financial assets (currencies / bank deposits / bonds / loans)

How do you calculate the Financial Account (FA) and what does FA > / < 0 mean?

What does the KA (Capital account) cover?

Covers two remaining areas of asset movement:

Capital transfer (gift of assets): forgiveness of debts
Acquisition and disposal of non financial assets

What is the balance of payments

Balance of payments is record of all cross - border payments in international trade and financial transaction

What does the balance of payments comprise (umfassen)?

it comprises the current account (CA), the financial account (FA) and the capital account (KA)

=> CA + FA + KA = 0

What does it mean if the current account (CA) is positive in the balance of payments?

Dispose = verfügt

What does it mean if the Current account (CA) is negative in the balance of payments?

Dispose = verfügt

What is the NIIP (net international investment position)

A country’s wealth (NIIP) is defined as the sum of all foreign assets (A) owned by the home country minus all of the domestic assets owned by foreigners (L (liabilities))

NIIP = ?

NIIP > / < 0?

NIIP = A - L