ECON102 Lecture : Econ 102, Jan 12, 2012, Done in LaTeX

• School: University of Alberta
• Department: Economics
• Course: ECON102
• Professor: Andrew Wong

Document Summary

Microeconomics: the study of how individual households and rms make decisions and how they interact with one another in markets. Macroeconomics: the study of the economy as a whole. The goal of macroeconomics is to explain the economic changes that a ect many households, rms and markets simultaneously: we begin our study of macroeconomics with the country"s total income and expenditure. Inputs production output: our economy can only grow if we increase goods and services, a byproduct of production is pollution. 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.