ECO 1 Lecture Notes - Lecture 10: Ceteris Paribus, Gross National Income, Gross Domestic Product
Document Summary
Overall economic activity and the circular flow of income diagram. Open economy with injections and leakages (including government) (the process of measuring overall economic activity is called national income accounting) Compare time periods of overall economic activity. Other economic variables are related, e. g. unemployment. C + i + g + (x - m) Where output is produced versus where income goes. Gdp gross domestic product - where output is produced. Gnp gross national product - where income goes. If pop growth < gdp growth, gdp per capita rises. If pop growth > gdp growth, gdp per capita lowers. Aggregate demand - aggregate supply model (not on the test) Refers to overall or total demand in the economy. Is the total amount of real output (gdp) that consumers, firms, government, and foreigners desire to purchase at each possible overall price level over a particular time period.
