ECON 102 Lecture Notes - Lecture 6: Gross Domestic Product, Nations Of Nineteen Eighty-Four, Price Level

• School: U of M
• Department: Economics
• Course: ECON 102
• Professor: Adam Stevenson

Document Summary

National income and products accounts (nipa) - measurements of the flows of money within an economy. Why measure: simple to know the size of the economy - supporting facts, compare the economy"s performance to another"s. To itself over time: growth: national income/output are closely related to many other variables. Health, civil rights, political stability, inequality: money buys happiness. Rich and poor are relatively equal - the richer countries have more money to pour back into the economy. Middle income countries (brazil) - mass amounts of inequality because some people are stuck in poverty, yet the rich make a lot of money. Are you happy? (subjective well-being) - graph: income is related to happiness. Cultural expectations: east asia - things are going okay when its good, latin america - say things are good when they are not. The circular flow model - orange are the real economy, green is the nominal economy.