ECN 211- Final Exam Guide - Comprehensive Notes for the exam ( 137 pages long!)
Document Summary
Gdp measures 2 things: total income of everyone in the economy, total expenditure on the economy"s output of goods and services, for an economy: income must equal expenditure. Transfer payments are not included in gdp: ex: social security. I(cid:374) atio(cid:374) is (cid:374)ot the i(cid:374)(cid:272)(cid:396)ease of a spe(cid:272)i (cid:272) product. I(cid:374) atio(cid:374) rate i(cid:374) (cid:455)ea(cid:396) 2 : producer price index (ppi)- a measure of the cost of a basket of goods and services bought (cid:271)(cid:455) a (cid:396)(cid:373) Introduction of new goods- consumers have more variety to choose from; reduces the cost of maintaining the same level of economic well being. Which job is just right for you: after college everyone wants a job. If you"re without a job after college, you enter the unemployed: unemployed- those without a job and actively looking for one, widespread unemployment- nation is not using its most valuable resources: people, economy always experiences unemployment.
