ECON 102 Chapter Notes - Chapter 5: Gross Domestic Product, Seasonal Adjustment, Final Good
16 Oct 2011
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Microeconomics how individual households and firms interact in the market. Macroeconomics the study of the economy as a whole. Goal of macroeconomists is to explain the economic changes that affect many households, firms and markets simultaneously. Economists and policymakers use data to monitor performance of the overall economy, one of which is gdp. Gdp gross domestic product most closely watched economic statistic because it"s thought to be best single measure of a society"s economic well-being. Gdp measures two things: total income and total expenditure on goods and services. Gdp can measure both because both are the same, for an economy as a whole, income equals expenditure. Every dollar of spending by some buyer is a dollar of income for some seller: ex: page 98:4, ex: circular flow diagram. Gdp: is the market value of all final goods and services produced within a country in a given period of time.
