ECO 1102 Lecture Notes - Lecture 5: Black Market, Gdp Deflator

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Claud Theoret

Document Summary

Eco 1102 - lecture 5 - chapter 7 - macroeconomics. In this chapter, we explore the economy on a broad scale such as unemployment, economic growth and inflation. Turn the production of goods and services into a common unit so that we can add them up. Farmers sell berries for the jelly for 0. 10$ The wholesaler sells them to the jelly factory for 0. 24$ The factory sells the jelly to grocery stores for 1. 85$ You have to add up all the transactions which equal 5. 69$, which that price then contributes to the gdp. Gdp: consumption + investment + government purchase + net export. We begin by breaking down expenditures into various categories. This way we don"t include immediate products like the labour of jelly workers. Most final goods and services are brought by people who intend to consume them, such as families buying groceries or clothes or haircuts. Firms buy some goods as an investment for future production.