What is Macroeconomics?
Economics explaining macroeconomic phenomena / facts.
Two most important macro fact
Economic growth ( long run )
Business cycle ( Short run )
How to measure GDP
GDP: Gross Domestic Product
The quantity of goods and services produced within a country's
borders over a particular period of time.
GNP: Gross National Product
The quantity of goods and services within a country's government
Products Approach: the value-added approach.
GDP is the sum of value added to goods and services across all
productive units in the economy.
GDP is calcuated as the total spending on all find goods and
services produced in the economy.
Income Approach: added up all income received by economic agents
contributing to the production.
Total revenue $20m
Interest on loan $ 0.5m
Thursday, August 30, 2018