ECON103 Study Guide - Midterm Guide: Gross Domestic Product, Gdp Deflator, List Of Countries By Gdp (Nominal)

• School: University of Delaware
• Department: Economics
• Course: ECON103
• Professor: Gorbachev Olga

Document Summary

Real gdp: taki(cid:374)g (cid:272)u(cid:396)(cid:396)e(cid:374)t (cid:395)ua(cid:374)tities (cid:271)ut setti(cid:374)g p(cid:396)i(cid:272)es to a p(cid:396)io(cid:396) (cid:455)ea(cid:396)"s p(cid:396)i(cid:272)e. To check quantities, look at the line on the graph where prices are fixed. Model: simplify world, despite being unrealistic, it evens the playing field. When faced with a recession, unemployment rises (more unemployed people: scientists: explain the world and the facts within it, policy advisors: try to make the world better. Unemployment: a study of how employed a group of people are. Positive statements: based on data, can be proved by facts/research etc. Normative statements: believe that all people have equal rights and responsibilities, cannot be proved. Circular flow model: shoes how money flows through households and firms. Factors of production: resources used to produce goods and services. Land, labor, capital (buildings and machines used in production) Households: own factors of production, buy and sell consumer goods + services. Microeconomics: the study of how households and firms make decisions and how they interact in markets.