ECON 104 Chapter Notes - Chapter 6: Potential Output, Transaction Cost, E-Commerce Payment System
11 Apr 2016
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Measure that describe economy as a unit. Chapter 6 macroeconomic aggregates: thinks about overall product of good and service allowed. Try and afect naional economy as a whole. Gdp/gnp: healthy increase gdp generally for good, growth rate sustain percent change of gdp over ime. Inlaion: decrease inlaion rate generally good, money supply is major determinant of inlaion rate. Unemployment rate: decrease rate generally good. Money funcion carried in economics: medium of exchange: used to save on transacion cost. Some form of money may be good money even if it fails badly doing the other 2 jobs. Commodity money: some good used to be picked for exchange: has intrinsic value (other use besides money. Commodity backed money: usually paper money backed by commodity (dollars backed by gold) Fiat money: has no intrinsic value and back by nothing: value only because believe it has, current use of money, decreed by government to be legal tender.
