EC140 Study Guide - Midterm Guide: Longrun, Retained Earnings, Stelco

• School: WLU
• Department: Economics
• Course: EC140
• Professor: Rizwan Tahir

Document Summary

Concerned with the behaviour of economics aggregates and averages. When aggregate output rises, the output of many commodities and the incomes of many people rise with it: unemployment rate rises workers suffer reductions in their incomes. Macroeconomics concerns with the short run behaviour (output, employment, inflation, how government policy can influence these variables) which concerns the study of business cycle. Macroeconomics also examines the long-run behaviour of the same variables, especially the long-run path of aggregate output. National product/output: value of its total production of goods and services which measures a nation"s overall level of economic activity: production of goods and services generates income. The value of national product by definition is equal to the value of national income. After this you add the values of different goods together, which gives us quantity of total output, or national income measured in dollars. Real national income/constant-dollar national income: national income measured in constant dollars.