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Final

ECON 1100 Study Guide - Final Guide: Opportunity Cost, Inverse Relation, Making Money


Department
Economics
Course Code
ECON 1100
Professor
Eveline Adomait
Study Guide
Final

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Dinner&Party&Economics&Pear&essay&1&
The&book&Dinner&Party&Economics,&by&Evie&Adomait&and&Richard&Maranta,&
opens&the&first&few&chapters&explaining&the&basic&concepts&of&macroeconomics.&The&
concepts&of&macroeconomics&relate&to&the&broader&selection&of&economics&involving&
the&economies&of&nations.&The&concepts&covered&in&the&book&include&growth,&
inflation,&unemployment,&GDP,&inequality,&money&supply,&and&different&debts&and&
deficits.&The&recent&values&of&GDP,&inflation,&and&unemployment&are&all&strong&
indicators&of&recent&events&involving&the&Canadian&Economy.&&
GDP&has&always&been&a&strong&measure&of&economic&strength&as&it&is&the&
account&for&all&spending&of&the&country,&thus&it&being&a&strong&economic&indicator.&As&
the&economy&has&been&constantly&growing,&the&GDP&has&been&following&suit&and&
growing&steadily.&In&2010,&a&recession&hit&the&country&and&as&the&strength&of&the&
economy&fell,&so&did&the&GDP.&In&2009,&the&GDP&was&1542.56&billion&dollars.&The&year&
after,&it&dropped&by&roughly&200&billion,&only&to&rise&up&again&to&1778.63&in&2012.&1&
The&reason&why&GDP&is&so&closely&related&to&the&strength&of&the&economy&is&because&
it&tracks&all&final&spending.&Since&final&spending&relates&to&how&much&people&are&
buying,&how&much&the&government&is&spending,&how&much&investors&are&investing,&
and&the&net&value&of&imports&and&exports,&there&is&a&strong&correlation&between&the&
GDP&and&the&economy’s&strength.&Although&the&GDP&is&a&great&measure,&there&is&a&lot&
more&to&consider&such&as&inflation&and&unemployment.&
Inflation&is&also&a&very&strong&indication&of&economic&growth&as&it&represents&
the&growth&of&the&prices&of&goods&and&services.&The&reason&inflation&is&related&to&
economic&strength&is&because&the&prices&of&goods&and&services&determine&the&
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