EC140 Lecture Notes - Lecture 17: Price Level
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EC140 Full Course Notes
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Document Summary
Macroeconomics the study of how the economy behaves without focusing on individual speciics (very broad) Concerned with the behaviour of economic aggregates and averages, such as : total output, total investment, total exports, price level, inluence of government policy. Behaviour inluenced by many diferent markets and combined behaviour of millions of diferent decision makers. Economic growth how investment and technological change afect our material living standards over long periods of ime. Nominal = looking within a year, usually higher than real gdp, doesn"t adjust for inlaion. Real = year to year comparison, adjusts for inlaion. Nominal naional income income measured in current dollars (current-dollar naional income) total naional. Change can resort from change in physical quaniies or prices which it is based. Real naional income (constant-dollar naional income) naional income measured in current (base-period) dollars.
