ECON 1 Study Guide - Final Guide: Market Clearing, Net Present Value, Labour Force Survey
Document Summary
Macroeconomics is the study of the behaviour of the economy as a whole (the big picture) Interactions and intersections of different markets (eg. markets, firms, etc. ) Factors of unemployment, gdp increases and decreases, etc. We ask why, how, etc. this happens in the economy. Four sections in the economy: government - federal, provincial, municipal, household - common people, firms, rest of the world - foreigners, other countries. We interact with one another in different markets: Goods and services market - firm produces goods/services and sells it to the other sections of the economy. Labour/factor/capital market - firms will rent/hire labour and capital to produce products and workers can sell labour to firms. Financial market - where the borrowing and lending happens. Total spending on final goods and services = consumer spending + investment spending + government spending (on goods and services) + exports - imports.
