COMM 1800 Lecture 7: Comm 1800 lectures 6&7

• School: University of Virginia
• Department: Commerce
• Course: COMM 1800
• Professor: Kemp Bob

Document Summary

Economics= study of financial welfare of an economy (society) and how an economy operates. Definition: the value of goods and services produced in an economy. Real (nominal gdp adjusted for price changes) Q= quantity of goods and services produced. P= price of goods and services produced. Thing about it real vs nominal gdp (income) Manufacturing: 79/78 %, like to be around 80% Transitional- healthy, management getting rid of bad employees, moving human resources from part of society to another. Dont want 0% unemployment, because that gets rid of transitional. Inflation (increasing prices) and deflation (decreasing prices) If a small change in price is accompanied by a large change in quantity demanded, the product is said to be elastic (or responsive toprice changes). Conversely, a product is inelastic if a large change in price is accompanied by a small amount of change in quantity demanded. Multiplier effect: we"re all in this together.