ECON 295 Lecture Notes - Canadian Dollar, Money Supply, Factor Cost
27 Apr 2012
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Document Summary
To measure total output in dollars, we add up the values of the many different goods produced. You produce hockey sticks, hot dogs, and halter tops. You can t just add up these items to find your output. But you can add up the dollar-worth of all these products. Results in the nominal national income: sum of all production in one year gdp, canadian gdp: $ 1. 6 trillion, quadrupled in the last 40 years. In a typical year, the gdp value goes up on average 5% per year. Q goes up more than p (3% and 2% respectively) We re concerned with the level of activity: q. How productivity is increasing, how many people we re hiring, etc. With base-period prices, we get real national income. When the p goes up, you know the productivity is going up in [real] terms. Recession defined as a period where gdp actually falls; negative growth . The trend shows long run economic growth.
