ECN 253 Lecture Notes - Lecture 1: Gross Domestic Product, Durable Good, Final Good
10 Sep 2016
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Document Summary
Positive analysis concerned with what is/where/why. Positive economics approach that seeks to understand behavior and the operation of systems without making judgments. It describes what exists and how it works. Normative economics- approach that analyzes outcomes of economic behavior, evaluate them as good or bad, and may prescribe courses of action. Macroeconomics study of the economy as a whole; topics of inflation, unemployment, & economic growth. Tools/models in macro are useful for these topics. Gdp: most common measure called the gross domestic product. Gdp: the market value of all final goods & services produced in a country during a period of time, typically one year. A final good or service is a good/service purchased by a final user. These are what are used to calculate the gdp. If we counted intermediate goods/services, ones that were inputs into another good/service, such as a tire on a truck, then we would end up double counting.
