Class Notes (836,276)
Canada (509,737)
Economics (1,617)
ECON 1BB3 (535)
Lecture 10

LECTURE 10 for Macroeconomics

2 Pages
Unlock Document

Bridget O' Shaughnessy

ECON 1BB3- LECTURE 10 (Chapter 5/6) How do I know if I am better off than my parents were? -Microeconomics: the study of how individual households and firms make decisions and how they interact with one another in markets -Macroeconomics: the study of the economy as a whole -GDP INCREASES if prices INCREASES or if output INCREASES -For an economy as a whole, income must equal expenditure -Real GDP: GDP measured in some base year prices  Answers the question “what should be the value of the goods and services produced this year if we valued these goods and services at the prices that prevailed in some specific year in the past?”  Shows how the economy’s overall production of goods and services change over time  Not affected by changes in prices  Holds price of base year constant  Real GDP uses constant base year prices to place a value on the economy’s production of goods and services  Better teller of economic well being -Nominal GDP: measured in current year prices  Uses current prices to place a value on the econom
More Less

Related notes for ECON 1BB3

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.