ECO 1102 Study Guide - Final Guide: Gross Domestic Product, Gdp Deflator, Loanable Funds

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: David Gray

Document Summary

Experiments more difficult: the role of assumptions. To simplify complex stuff: economic models, first model: circular-flow diagram. Do not include all details, simplify to aide our understanding: second model: production possibilities frontier. Points on the frontier represent efficient outcomes: micro and macro. Microeconomics: the study of how households and firms make decisions and how they interact in markets. Macroeconomics: the study of economy-wide phenomena, including inflation, unemployment, and economic growth the economist as a policy advisor: when economists try to explain the world=scientists, when economists try to improve it=policy advisors, positive vs normative analysis: Positive statements: claims that attempt to describe the world as it is. Market: a group of buyers and sellers of a particular good or. Quantity demanded: the amount of a good that buyers are willing and able to purchase. Law of demand: the claim that, other things equal, the quantity demanded of a good falls when the price of the good rises.