MKT 100 Chapter Notes - Chapter 6: Demand Shock, Nominal Rigidity, Business Cycle

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Anthony Bonato

Document Summary

6. 1: assesing the health of the economy- performance and policy. In assesing the health and development of an economy, macroeconomists focus on: real gdp, unemployment. Measures the value of final goods and services produced within the boarders of a given country during a given time period, typically a year. To calculate real gdp, nominal gdp must first be caluculated. Real gdp is the appropiriate measure one should use to determine changes in economic activity across time. This is because nominal gdp captures both changes in output and changes in prices over time. Thus, nominal gdp may increase without any change (or even a decrease) in rel economic activity. Is the state a person is in if he/she cant get a job despite willig to work nd actively seeking work. High rates of u/e are undesrirable bc they indicte that the nation is not using a large fraction of its most important resource, the talents and skills of its people.