ECON 1010 Lecture Notes - Lecture 1: Ceteris Paribus, Potential Output, Final Good

68 views9 pages

eringiraffe320

25 Feb 2018

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Macro economics: gdp is a market value goods and services are valued at their market prices (gdp stands for. Intermediate good these are items that is produced by one firm, bought by another firm, and used as a component of a final good or service: gdp is measured in two ways: In the expenditure method: gdp = c + i + g + (x m) An expansion is a period during which real gdp increases from trough to a peak. Involuntary part-timers: people who want full-time jobs and can"t find them as not counted as unemployed. The creation and destruction of jobs requires that unemployed workers search for new jobs. Lasts longer than frictional: cyclical unemployment, price level is the average level of prices and the value of money: It measures the inflation rate or the deflation rate: distinguish between money values and real values of economic variables. Inflation- persistently rising price level: deflation persistently falling price level.

Related Questions

7. The difference between nominal GDP and real GDP is that nominal GDP:

	A.	measures a country's production of final goods and services at current market prices, whereas real GDP measures a country's production of final goods and services at the same prices in all years.
	B.	is measured in dollar terms, whereas real GDP is measured in terms of numbers of goods and services produced
	C.	measures the total value of only final goods and services, whereas real GDP measures the value of all goods and services, both intermediate and final
	D.	measures a country's production of final goods and services at fixed prices, whereas real GDP measures a country's production of all final goods and services at current market prices

carminekoala560

Which of the following statements about GDP is correct

A) Money continuously flows from households to firms and then back to households, and GDP measures this flow of money

B) GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services.

C) While not perfect, GDP is generally regarded as the best single measure of a society’s economic well-being.

D) All of the above are correct.

emeraldmarten620

1. What does the investment component of GDP measure?

a. spending by households on goods and services

b. spending by government agencies on goods and services

c. spending on goods to be used in future production

d. spending on domestically produced goods by foreign buyers

2. A good produced in the current time period but put into a firm's inventory instead of being sold

a. is only included as a part of consumption in future GDP when it is sold.

b. is counted as consumption in the current GDP since it was produced in the current time period.

c. is excluded from the current GDP.

d. is considered unsold inventory and counted as a part of the investment in current GDP.

burgundycrow837

ECON 1010 Lecture Notes - Lecture 1: Ceteris Paribus, Potential Output, Final Good

Document Summary

Get access

Related Documents

ECON 1010 Lecture Notes - Lecture 2: Gross Domestic Product, Final Good, Intermediate Good

ECON 1010 Chapter Notes - Chapter 20: Final Good, Indirect Tax, Factor Cost

ECON 1010 Chapter 20: Chapter20macro

Related Questions