PHL 302 : study guide

• School: Ryerson University
• Department: Philosophy
• Course: PHL 302
• Professor: Glen Hoffmann

Document Summary

Explain what we mean by potential output (gdp). Explain why potential gdp does not depend on the price level. Okun"s law says that differences between the growth rate in potential output and the growth rate in real gdp change the unemployment rate as follows: Based on the data in the following table, calculate the annual growth rates of potential output and real gdp. Define aggregate demand and explain the difference between an aggregate demand function and an aggregate expenditure function.