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DEBASISHBISWAS
Course Instructor
Course: Macro Economics
Section: K
AIUB
Where Leader are Created
Islam Shah Syful 09-13027-1
Sozib Md. Habibur Rhaman 08-12419-3
Alam Md. Toushikul 09-12855-1
Haque Mohammad Ashikul 09-13...
The gross domestic product (GDP) is a basic 
measure of a country's overall economic 
output.
 It is the market value of...
There are three approaches to measure
gross domestic product (GDP)
 Two sector models
 Three sector model
 Four sector ...
Two sector
models
 Two sectors model known as classic model
 In two sector model house hold input
money to the farm by e...
Y = C
A person gets 3000tk wages, 5000tk
interest, 500rent from a business farm.
On the other hand, the business farm
gate...
Spending
Goods and
services
bought
Revenue
Goods
and services
sold
Labor, land,
and capital
Income
= Flow of inputs
and ou...
 On other diagram we see that saving go in
to capital market and it’s tarn in to in
vestment.
Y = C + S
Y = C + I
S = I
 A person gates 8000tk wages, 15000tk
interest, 1000rent from a business farm.
On the other hand the business farm
gates ...
Spending
Goods and
services
bought
Revenue
Goods
and services
sold
Labor, land,
and capital
Income
= Flow of inputs
and ou...
Three sector
model
 This model is like two sector model hear
it include government. Hear govern takes
direct & indirect t...
Y = C + I + G
 A person gates 8000tk wages, 15000tk
interest, 1000rent from a business farm.
And give tax 3600. On the ot...
fig
Factor
payments
Consumption of
domestically
produced goods
and services (Cd)
Investment (I)
Government
expenditure (G)...
Four sector
model
 Four sector models like three sector
model except it has included foregone
exchange here government an...
Y = C + S + G + Xn
Xn = the balance of foreign trade
( Export – Import )
fig
Factor
payments
Consumption of
domestically
produced goods
and services (Cd)
Investment (I)
Government
expenditure (G)...
4 sector model of Macro Economic
4 sector model of Macro Economic
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4 sector model of Macro Economic

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This slid will help to the student to understand the four sector model of Macro economics.

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4 sector model of Macro Economic

  1. 1. DEBASISHBISWAS Course Instructor Course: Macro Economics Section: K AIUB Where Leader are Created
  2. 2. Islam Shah Syful 09-13027-1 Sozib Md. Habibur Rhaman 08-12419-3 Alam Md. Toushikul 09-12855-1 Haque Mohammad Ashikul 09-13015-1 Uddin Syed Sarwer 09-13010-1 PREPERED BY
  3. 3. The gross domestic product (GDP) is a basic  measure of a country's overall economic  output.  It is the market value of all final goods and  services made within the borders of a country  in a year MEASURING GROSS DOMESTIC PRODUCT
  4. 4. There are three approaches to measure gross domestic product (GDP)  Two sector models  Three sector model  Four sector model
  5. 5. Two sector models  Two sectors model known as classic model  In two sector model house hold input money to the farm by expenditure and farm give money to the household by wages, Interest, Rent, and Profit
  6. 6. Y = C A person gets 3000tk wages, 5000tk interest, 500rent from a business farm. On the other hand, the business farm gates 8500tk by his expenses.
  7. 7. Spending Goods and services bought Revenue Goods and services sold Labor, land, and capital Income = Flow of inputs and outputs = Flow of dollars Factors of production Wages, rent, and profit FIRMS •Produce and sell goods and services •Hire and use factors of production •Buy and consume goods and services •Own and sell factors of production HOUSEHOLDS •Households sell •Firms buy MARKETS FOR FACTORS OF PRODUCTION •Firms sell •Households buy MARKETS FOR GOODS AND SERVICES Copyright © 2004 South-Western Two sector models Diagram
  8. 8.  On other diagram we see that saving go in to capital market and it’s tarn in to in vestment. Y = C + S Y = C + I S = I
  9. 9.  A person gates 8000tk wages, 15000tk interest, 1000rent from a business farm. On the other hand the business farm gates 15000tk by his expenses and 9000tk by investment Y = C + I
  10. 10. Spending Goods and services bought Revenue Goods and services sold Labor, land, and capital Income = Flow of inputs and outputs = Flow of dollars Factors of production Wages, rent, and profit FIRMS •Produce and sell goods and services •Hire and use factors of production •Buy and consume goods and services •Own and sell factors of production HOUSEHOLDS •Households sell •Firms buy MARKETS FOR FACTORS OF PRODUCTION •Firms sell •Households buy MARKETS FOR GOODS AND SERVICES Copyright © 2004 South-Western Investment Capital Market Saving
  11. 11. Three sector model  This model is like two sector model hear it include government. Hear govern takes direct & indirect taxes from people & business firm and expense where needed
  12. 12. Y = C + I + G  A person gates 8000tk wages, 15000tk interest, 1000rent from a business farm. And give tax 3600. On the other hand the business farm gates 13200tk by his expenses and 7200tk by investment and government invest 3600tk.
  13. 13. fig Factor payments Consumption of domestically produced goods and services (Cd) Investment (I) Government expenditure (G) BANKS, etc Net saving (S) GOV. Net taxes (T)
  14. 14. Four sector model  Four sector models like three sector model except it has included foregone exchange here government and business farm import goods, services and man power and export goods, services and man power. The balance of import & export business is called XN
  15. 15. Y = C + S + G + Xn Xn = the balance of foreign trade ( Export – Import )
  16. 16. fig Factor payments Consumption of domestically produced goods and services (Cd) Investment (I) Government expenditure (G) Export expenditure (X) BANKS, etc Net saving (S) GOV. Net taxes (T) XN Import expenditure (M)

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