ECON 2202 Lecture 2: Ch1.1 Introduction

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31 May 2019
Chapter1. introduction
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
Three approaches
Products Approach: the value-added approach.
GDP is the sum of value added to goods and services across all
productive units in the economy.
Expenditure Approach:
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.
Coconut producer
Total revenue $20m
Wages $5m
Interest on loan $ 0.5m
Taxes $1.5m
Thursday, August 30, 2018
10:59 AM
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