ECON102 Lecture 2: Wealth of NATIONS
15 Jan 2019
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John m. keynes wrote book that changed the way people measure the wealth of nations from military force to productivity of its people. Macroeconomics: the study of the economy on a broad scale, focusing on issues such as economic growth, unemployment, and inflation. a. b. Measurements: helps to see where we are in the moment and to set goals for the future. Policy: helps take the economy from where we are from where we want to go i. ii. Models: tells us if the policy will work or not. Most common metric for measuring the value of a national economy. Income generates from production of goods and services. Production is a process that converts inputs into outputs. 2 hurdles that we must overcome when measuring how much a nation can produce i a given year. a. b. How to add up unique goods and services into one measure of productivity.
