ECO 1102 Lecture Notes - Lecture 3: Gross National Product, Karen People, Intermediate Good

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ECO 1102 Full Course Notes
46
ECO 1102 Full Course Notes
Verified Note
46 documents

Document Summary

Microeconomics: the study of how individuals and how firms make decisions and how they interact in markets. Macroeconomics: the study of economy-wide phenomena, including inflation, unemployment, and economic growth. Gross domestic product (gdp): measures the total income of a nation; the most closely watched economic statistic because it is the best measure of a society"s economic well-being. For an economy as a whole, income must equal expenditure. Gdp measures two things at once: the total income of everyone in the economy and the total expenditure on the economy"s output of goods and services. The reason that gdp can perform the trick of measuring both total income and total expenditure is that these two things are really the same. Gdp: the market value of all final goods and services produced within a country in a given period of time. Gdp adds together many different kinds of products into a single measure of the value of economic activity.