ECON 20B Lecture Notes - Lecture 2: Lemonade, Intermediate Good, Gross Domestic Product
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ECON 20B Full Course Notes
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Econ 20b- lecture 2- gross domestic product: gdp. Microeconomics: study of how individual households and firms makes decisions and how they interact with one another in markets. Study the behavior of people who consume coffee (demand) and firms that see coffee (supply) See how equilibrium price depends on the behavior of both demanders and suppliers. Macroeconomics: study of the overall aspects and workings of an economy, such as income, inflation, growth, employment and interest rate. Ex: you see the markets for coffee, salmon, computers, cars, etc. Examine the total output in an economy rather than on itself. Unemployment rate falls from 7% to 6. 7% The price of gasoline rises due to rising oil prices. Gdp ( the total income or value of output) to understand the health of an economy. Understand how the performance of the economy is changing over time. Understand the different in the performance of two economies.