ECN 204 Lecture Notes - Lecture 3: Canada Pension Plan, Ryerson University, Dry Cleaning
Document Summary
Readings: chapter 5 (please read the related topics from other introductory level of microeconomics textbooks for your own benefits). You have to make your own note from lecture. The study of how individual households and firms make decisions, interact with one another in markets: macroeconomics: The study of the economy as a whole. We begin our study of macroeconomics with the country"s total income and expenditure. Income and expenditure: gross domestic product (gdp) measures total income of everyone in the economy, gdp also measures total expenditure on the economy"s output of goods and services. For the economy as a whole, income equals expenditure because every dollar a buyer spends is a dollar of income for the seller. The circular-flow diagram a simple depiction of the macroeconomy illustrates gdp as spending, revenue, factor payments, and income: preliminaries: Factors of production are inputs like labour, land, capital, and natural resources. Factor payments are payments to the factors of production (e. g. , wages, rent).
