ECON 2020 Lecture Notes - Lecture 1: International Swaps And Derivatives Association, Flat Tax, Open Market Operation
Document Summary
Real gdp: q3 5% annual growth rate. Slower growth less domestic consumption: in europe\ Shows trade off in production of one good to another at certain points. 3 assumptions to produce at a point along the ppf: finite inputs at any given time, technology, efficiency. Ppf shows: scarcity, opportunity cost, choice. Can be measured by the labor force growth rate: technology. Supply side growth: capacity for expansion. Will be met if we assume efficiency: does not represent actual output. Between specialization and trade, a country can increase output, expand ppf. Countries can borrow money from the world bank. Global economy: 2014 global economy grew 2. 6, expect 3% growth in 2015 forecasted for 3. 4% in june 2014. Us economy: forecast is 3. 2% growth. Was 3: lower prices of oil allow for more purchases of other goods. For every cent price of gasoline is lowered, about 1 billion more spending power in us economy.
