ECO 1102 Lecture Notes - Lecture 1: Real Gross Domestic Product, Quantitative Easing, Inflation Targeting
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Document Summary
Learn how to further study and understand macroeconomics. Economics is the study of how people manage sources. Decisions made by individuals and also by groups. Resources are both physical objects and intangibles such as time. Economics is divided into 2 broad fields. Macroeconomics: study of the economy on a regional, national, or international scale. The circular flow model represents a basic economy. The difference between household and firm is that. The flow of good and services goes from the firm to the household. The flow of dollar is from the household to the firm. A market refers to the buyers and sellers who trade a particular good or service. Markets can be located locally, globally, and even virtually. One special class of markets is the competitive market. Markets are assumed to be perfectly competitive. As a group, consumers determine the demand for a product. The quantity demanded is the amount of a particular good or service that buyers.
