ECON 102 Lecture 5: Lecture #5
Document Summary
Economic indicator of the day: gross domestic product. A. 1. changey/y = 1. 1% (sar - seasonally adjusted annual rate). Recovery continues and is driven by consumer spending and exports. Profits fell 1. 2% (not annualized), 5th decline in 6 quarters. Composition of economic growth is changing due to. Greater consumption and lower net: rules of thumb exports. Growth > 2% improvement in the labor market: growth in real final sales = 2. 4% Inventory investment subtracted 1. 3 percentage points from gdp growth. What matters for gdp growth is the change in the change in. Output level & output gap inventories: over sustainable level = government is overheating, end quarter 2016 gdp. Spending = c + i + g + x - m. Overall growth rate: overall gr = growth in real final sales + inventory investment. Equilibrium condition: q. s = q. d, y + m = c + i + g + x.
