ECON 1040 Lecture Notes - Lecture 3: Gross Domestic Product, Business Cycle, Environmental Quality
Document Summary
Introduction to macroeconomics and gross domestic product: macroeconomics, microeconomics, economy-wide issues, aggregated-level. Inflation: unemployment, economic growth, gross domestic product (gdp) Nx net exports: biggest component of gdp is consumption. Investment: capital purchahses, changes in business inventories, does not include stocks and bonds. New residential housing: government purchases, spending by state, local and federal governments on goods and services, transfer payments are not included, net exports. If imports < exports -> nx > 0 -> trade deficit: exports minus imports, nx represents only a small fraction of total gdp. 100: price level, an index to measure prices of goods and services in an economy, gdp deflator: price level index that includes prices of final goods and services in. Gdp: growth rates, calculated using a percent change formula, % =(cid:3049)(cid:3048) (cid:3049)(cid:3048) (cid:3117) (cid:3049)(cid:3048) (cid:3117) (cid:883)(cid:882)(cid:882: nominal gdp growth in 2012 = (cid:3118)(cid:3116)(cid:3117)(cid:3118) (cid:3118)(cid:3116)(cid:3117)(cid:3117) (cid:3118)(cid:3116)(cid:3117)(cid:3117)
