MHR 523 Chapter Notes - Chapter 4: Nominal Rigidity, Demand Curve, Supply Shock
Course CodeMHR 523
ProfessorAl- Karim Samnani
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ECONOMICS CHAPTER NOTES
•Business cycle- increases and decreases in the level of economic
activity over years
•Real GDP- measures value of final goods and services produced in
the borders of a country during specific time period.
•To calculate Real GDP we must know Nominal GDP- value of final
goods and services produced within the border of a country using its
current prices when the goods/service was produced
•Unemployment-when a person can’t find work even being willing and
able to do so.
•Inflation-an increase in overall price level.
•Modern Economic Growth-historically recent phenomenon in which
nations for the first time have experienced sustained increases in real
GDP per capita.
•GDP per capita- the average amount of output each person in each
country could have if each country’s total output were divided equally
within its citizens. (Measure of country’s standards of living)
• Purchasing Power Parity adjusts for the fact that prices In some
countries are much lower than others. The adjustment trusts that $1
of GDP per person in Canada represents about the same quantity of
goods and services as $1 of GDP per person in any other country
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