ECON1020 Lecture Notes - Lecture 1: Gdp Deflator, Real Business-Cycle Theory, Nominal Interest Rate
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Document Summary
Macroeconomics study of whole economy, including issues such as inflation, unemployment, economic growth. Gdp gross domestic product, measure of total production, real growth. Economic growth stable and strong rate of economic growth, higher real gdp. Inflation maintain within rba target range of 2-3% p. a. , by increasing/decreasing interest rates. Manageable current account deficit in balance of payments: objectives conflict with each other, usually achieve 1, 2, 3 then focus on 4. Stable and sustained increased standards of living greater wellbeing. Measured usually as rate of growth in real gdp per capita. Unused human resources, which if employed would increase real gdp. Percentage of the sum of employed and unemployed workers (labour force) in economy. Creates problems lost tax, reduced profits, retraining costs, increased unemployment benefits. Percentage increase in general price level from one year to next. Imposes costs on economy money loses value, poor distribution of income. If australian prices higher, effects balance of payments imports popular, exports less popular.