ECN 204 Chapter 6: ECN 204 - Chapter 6
Document Summary
Ecn 204 chapter 6 an intro to macroeconomics. In the health and development of an economy, economists focus on: Measures the value of final goods and services produced within the borders of a given country during a given time period, typically a year. Helps tell whether an economy"s output is growing. Ex: if gdp is greater in one year from the next, that means output increased. Real gdp helps compare output rather than prices. A failure of the economy to fully employ its labour force. Occurs when a person cannot get a job despite being willing to work. Can cause decrease in standard of living. Surprise jump in inflation reduces the purchasing power of people"s savings. Are certain government policy tools, more effective than others (monetary policy vs fiscal policy) Is there a trade-off between lower rates of unemployment and higher rates of inflation.
