[ECON 223] - Final Exam Guide - Comprehensive Notes for the exam (92 pages long!)
1 Dec 2016
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We assume: consumers maximize utility producers maximize pro ts. Concerned with the overall price level, average wage and unemployment rate at the national level. Choices made by government and central banks. Real total actual material, end products and services society produces. Nominal aka paper economy current dollar value of these end products and services. Example, your per hour vs grandparents salary during they"re time. Your minimum wage isn"t comparable to theirs when they were young (in ation) (this is your nominal wage) To nd real wage: divide nominal wage () by an indicator of the overall price level tells us how much you are producing process is called de ating: because prices in ate overtime (usually) Real and nominal economy don"t grow at the same rate. Nominal economy registers how much paper or electric money is circulating. 3 main branches of macroeconomic policy monetary policy, scal policy and international economic relations.
