ECN 204 Lecture 3: Lecture 3.docx
Document Summary
Lecture 3: assessing the health of the economy: performance and policy, in assessing the health and development of an economy, macroeconomics focuses on: Unemployment: a failure of the economy to employ its labor force full. Inflation: an increase in the overall price, economic growth is an increase either in real output (gdp) or in real output per capita, three main indicators of macroeconomic activity: output, real gdp measures output and income. Compound interest is the payment of interest not only on the original deposit, but on all previously accumulated interest. The fraction of the population employed: in the long run productivity. The important factor has been increases in average labor. Labor productivity is the average product of labor output per worker per hour: determinants of average labor productivity, average labor productivity depends on: Is the accumulation of prior investments in education, training, health, and other factors that increase productivity.
