ECON 291 Lecture Notes - Lecture 2: Real Interest Rate, Disposable And Discretionary Income, Demand Curve

• School: Simon Fraser University
• Department: Economics
• Course: ECON 291
• Professor: Junjie Liu

Document Summary

National income: where it comes from and where it goes. Topics covered: the supply of good and services, the division of national income, the demand for good and services, equilibrium in the market for good and services, equilibrium in the financial market. Introduction: as we have seen, gdp measures both a nation"s total output of goods and services and its total income, this chapter addresses questions about the sources and uses of a nation"s gdp. The circular flow of dollars through the economy. Each orange box represents an economic actor households, firms, and the government. Each blue box represents a type of market the markets for goods and services, the markets for the factors of production, and financial markets. The green arrows show the flow of dollars among the economic actors through the three types of markets. An economy"s output of goods and services (its gdp) depends on. 1) its quantity of inputs, called the factors of production, and.