ECON 102 Lecture Notes - Lecture 1: Economy 7, Business Cycle, Price Level
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Econ 102 lecture 1 what macroeconomics is all about. Introduction: bottom up model, microeconomic foundation, analyze the choices of each optimizing agent, top down model, macroeconomic aggregation, analyze the behaviour of the entire group, our course follows the top down approach, macroeconomics. Outline of notes for the 5 yupie variables: what is it, historical experience, why it matters, key macroeconomic variables, y - output and income and growth rate i. ii. iii. By definition, national product = national income: output generates income. National income: what is it: final - not intermediate goods ; no double counting . 9: y is the primary target; u and p secondary; i and e tertiary. Inflation, p, is directly related to growth in y. Gdp (y) = gdp (e) - output generates income. Nominal = actual = current = money = p and/or q. Real = constant dollar = only q, holding p constant to base year values.
