ECON 2000 Chapter 1: Econ 2000.pdf
7 Apr 2014
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I. e topical issues such as the housing market and how it effects the economy, government budget and deficit. * inflation rate fluctuates along with real gdp. Macro economics: study of the economy as a whole. Real gdp per capita -- long run -> will always increase. Supply and demand for new cars -> various affect price and q of cars. Qd = quantity of cars that buyers demand. * unemployment drops significantly during a depression period, > after a shock like this, there is a lag (i. e takes a while to shoot back up) > simple versions of more complex reality (show relationships, explain economy behaviour, and devise policies) Qd = d (p,y) < -- related to price and aggregate income. Gross domestic product - total expenditures on domestically produced g/s. Expenditure = income (every $ a buyer spends, become income to seller) Total income earned by domestically located factors of production. With that income there are expenditures ex.
