ECON 352gx Lecture Notes - Lecture 1: Gdp Deflator
Document Summary
Middle wage occupations are routine tasks performed by following well defined instructions that are limited in scope. Account for half of aggregate employment and nearly all job loss in recessions. How much approach: reduce quantities consumed across all categories, postpone purchases of some categories, search and shore more intensely to get better prices. What approach: within each category reduce the quality of goods consumed e. g. when eating away during recessions, low end consumption increases. Observations on long-run growth no significant empirical relation between taxation and growth in the long-run drastically reducing incentives to investment severely hurts growth effects of taxation are non-linear. Gross domestic product (gop) the most widely used concept of measuring economic activity associated with standards of living, unemployment, deficits, inflation. How to measure gdp: value of all final goods. Services newly produced: total value of income receives. Wages, capital income, profits, etc: the sum of expenditures. Y = c + i + g + nx.
