CAS EC 102 Lecture Notes - Lecture 3: Macroeconomics, Unemployment Benefits, Potential Output

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Bruce Watson

Document Summary

Calculated by the bureau of economic analysis - a division of the dept. of commerce. Issue the nipa - national income and product accounts. Calculates gdp by adding up the value of expenditures on all final goods and services in the economy. Company sold a million laptops and each cost a thousand, then value is the hundred million thousand dollars. Right now, biggest expenditure is on bu tuition and that"s a service. Durable goods mean long-term goods such as washing machines, tablets, etc. Non-durable goods mean goods that doesn"t last long such as clothes and food. When consumers are pessimistic or uncertain, this have impact on other economic variables. What happened in 2007, people stopped buying stuff. 1) plant - commercial buildings ex. factories, warehouses, office buildings. What is the net result - if they put 80 billion in inventory, what they take out 100 billion, negative 20 billion will be net.