ECN 301 Chapter Notes - Chapter 2: Gross Domestic Product, Nominal Interest Rate, Foreign Exchange Market

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5 Apr 2011
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Statistics and economic activity: economic activity is the pattern of transactions in which things of real, useful value are created, transformed, and exchanged, national income and expenditure accounts (niea) The importance of data: economists use quantitative data to examine and understand behavior, data can be used in two ways. Six key economic variables: real gross domestic product (gdp, the unemployment rate, the inflation rate, the interest rate, the level of the stock market, the exchange rate. Is corrected for changes in the price level (real) Includes the replacement of worn-out and obsolete equipment and structures as well as new investment (gross) Counts economic activity that happens in canada (domestic) Represents the production of final goods and services (product) Often divided by the number of workers in the economy. Measures how well the economy produces goods and services that people find useful. Does not indicate the relative distribution of the nation"s economic product. Is an imperfect measure of economic well-being www. notesolution. com.