ECON-2000 Lecture Notes - Lecture 24: Game Theory, Gross Domestic Product, Nash Equilibrium
Document Summary
Econ lecture 22, 23, and 24: game theory, intro to macro. Nash equilibrium: a stable state of a system involving the interaction of different participants in which no participant can gain by a unilateral change of strategy if the strategies of the others remain the same (cooperate vs defect) Macroeconomics: study of economy-wide issues, instead of focusing on one person, firm or household. A misconception: there is no reliable way to determine how well an entire economy is performing (there is truth to this) There is an objective and reliable measure of macroeconomic performance: gdp. Gdp: gross domestic product : the market value of all final goods and services produced within a country in a year. Includes the production of machinery and equipment used to produce other goods. But the services of the salespeople is included. E(cid:454): (cid:455)ou (cid:272)a(cid:374)"t (cid:272)ou(cid:374)t a used (cid:272)ar, (cid:271)ut (cid:455)ou do i(cid:374)(cid:272)lude the sales(cid:373)a(cid:374)"s (cid:272)o(cid:373)(cid:373)issio(cid:374)
