MGMT100 Lecture 3: Week 3
Document Summary
Week 3: creating and capturing customer value macroeconomics and marketing. Looks at issues such as output, employment and prices but in the context of the whole economy. Gdp measures the total value of final goods and services produced in any given time period. To make meaningful comparisons of gdp in different years we, need to express it in terms of a constant price level. This eliminates the effect on gdp of changes in the price level. Gdp measured in constant prices is known as real gdp. The circular flow in income model depicts the flows of money around the economy. The inner flow shows the direct flows between firms and households. Money flows from firms to households in the form of factor payments, and back again as consumer expenditure on domestically produced goods and services. Not all income is passed on directly around the inner flow.