ECON 1100 Chapter Notes - Chapter 4: Gross Domestic Product, Old Age Security, Business Cycle
13 Jan 2015
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Document Summary
Macroeconomics is the study of the economy as a whole. Some crucial topics are inflation, unemployment, and economic growth. Economic cycle refers to alternating periods of expansion and recession of a country. In the business cycle, expansion refers to where total production and total employment are increasing. (good sign for the economy) In the business cycle, recession is a period when total production and employment starts decreasing. (bad sign for the economy, a lot of people lose their job) Economics growth= the ability for the economy to produce increasing quantities of goods and services. Important because economy that grows very slowly fails to raise their standard of living. Inflation rate: % increase in the price level from one year to the next. (pg 96) Gross domestic product (gdp): market value of all final goods and services produced in a country in one year. It is measured using market values not quantities.
