MGTA01H3 Chapter 2: Chapter 2-Notes.doc
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MGTA01H3 Full Course Notes
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Low inflation means it pays relatively constant prices for its supplies, but can"t really increase the prices it charges consumers. Economic growth: at one time half of cdn population produced food, now only 2. 5% work in agriculture, agriculture has become more efficient, therefore it has grown. Aggregate output and the standard of living: aggregate output: total quality of goods and services produced by an economic system during a given period. This is the main measure of growth in business cycle. Progress indicator which gives negative values for all the that harm the environment or our quality of life: new gpi measure show that gdp increasing but gpi falling since 1970"s. The real growth rate of gdp-growth rate of gdp adjusted for inflation and changes in the value of the country"s currency is what counts. Nominal gdp: gdp measured in current dollar or will all comparisons valued at current price.
