ECON1002 Final: ECON1002-Final-Exam-Notes
Document Summary
Lecture 1: introduction to macroeconomics and measuring macroeconomic performance (output) Economics: social science that analyses the production, distribution & consumption of goods & services. Short-run macroeconomics analyses the business cycle and its implications. Toyota japan do not: monthly, quarterly or annual gdp. Problem: it can mislead when comparing gdp over time. Why: nominal gdp can rise simply due to a higher general price level rather than the production level (i. e. does not take into account the impacts of inflation) Macroeconomists are more interested in changes to production over time: efficient allocation of scarce factors of production, real gdp rises when quantities rise. Real gdp: not the same as economic well-being. Environmental quality and resource depletion are excluded. However, can be argued to be somewhat linked to economic well-being. Given the aforementioned deficiencies, gdp is nevertheless closely related to economic wellbeing.
