ECON 102 Lecture Notes - Gross Domestic Product, Annual Percentage Rate, Structural Unemployment
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ECON 102 Full Course Notes
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Document Summary
National income is typically measured by measuring the economy"s input. Gross domestic product (gdp) most common output measure: gdp can be measured using nominal (current prices) or real (constant prices) quantities, we focus on real gdp (how much stuff people can consume; income) chapter 20. Two factors that change constantly: quantity produced (available for consumption) Graph of real gdp: constant growth rate constant upward slope (well approximated by a straight line, rarely goes down, real gdp grows at roughly the same rate from quarter to quarter. Real gdp is increasing (on average) over time economic growth: average quarterly growth rate = 0. 83% Implies an annual average growth rate = 3. 4% However, real gdp is constantly fluctuating around its upward trend business cycles. Fluctuations around the growth rate = business cycles. A recession occurs when real gdp growth is below the average growth rate. Employment the number of people 15 years old or older who have jobs.
