ECON 295 Lecture Notes - Lecture 1: Capital Account, What Lies Ahead, Real Interest Rate
8 Apr 2016
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Document Summary
Macroeconomics focuses on individual economic units- individual markets, individual consumers and firms. Prices and inflation (very little inflation in recent years, dealing with how to handle etc. ) Exchange rates (cad vs. usd, effects costs of imports etc. , value of dollar dropped recently) Monetary (independent of government, determined by ex bank of. Output (production) generates income (get income from producing something ex services) To get money value of total output, sum values of the many different goods produced. This gives nominal national income (nominal gdp) To find the change in quantity of production between years, must adjust for inflation (ie measure in constant dollars) When current output is valued at base-period prices, we get real national income (real gdp) Real economic growth means that real gdp increases. Real per capita economic growth means real gdp per person increases. But even though it means people are better off on average, some individuals may be worse off.
