EC140 Chapter Notes - Chapter 19.1: Potential Output, Business Cycle, Nominal Interest Rate
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EC140 Full Course Notes
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Document Summary
Macroeconomics: the study of determination of economic aggregates, such as total output, total employment, the price level and the rate of economic growth: concerned with aggregates and averages (ex. Total exports, imports, etc. ) and how they may be affected by government policy: examines business cycles, overall study of economic growth, short-run fluctutations and long-run economic growth. Adding up values of different goods and services produced. Dollar value of producing products, not the quantity: ex. Measuring the price of producing 10 loaves of bread, not adding up 10 loaves of bread and other products. Real national income: national income measured in constant (base-period) dollars. Gdp is one of the most used measures of national income: can be either real or nominal terms. Positive trend in real output is referred to as long-term economic growth. Recession: a fall in the level of real gdp. Often defined as two consecutive quarters of negative growth in real gdp.
