ECN 204 Lecture Notes - Lecture 1: Nominal Rigidity
18 Jan 2017
School
Department
Course
Professor
Document Summary
Assessing the health of the economy - 6. 1. In assessing the health and development of an economy, macroeconomists focus on: Measures the value of final goods and services produced within the borders of a given country during a given time, typically a year. To calculate real gdp, nominal gdp must first be calculated. A failure of the economy to fully employ its labour force. Occurs when a person cannot get a job despite being willing to work and actively seeking work. An increase of overall level of prices. Can cause decreases in standard of living. Surprise jump in inflation reduces the purchasing power of people"s savings. The miracle of modern economic growth - 6. 2. Modern economic growth refers to an increase in output per person as compared with earlier times. The vast difference in living standards seen today between rich and poor countries are almost entirely the result of the fact that only some countries have experience modern economic growth.
