ECO 212 Lecture Notes - Lecture 1: National Income And Product Accounts, Gross Domestic Product, Gdp Deflator

• School: University of Miami
• Department: Economics
• Course: ECO 212
• Professor: Susino M.Lorca

Document Summary

Income a: how do we make it to income? i. Fluctuation due to the business cycle (gdp = gross domestic. Product: calculations, real, normal, gdp deflator b. Gdp has an effect on the labor market: correlation between production and employment. Inflation is related to consumer price index a. i. ii. Gdp from real gdp (which holds prices fixed). Macroeconomics is the study of economic aggregates and economy-wide phenomena like the annual growth rate of a country"s total economic output or the annual percentage increase in the total cost of living. Calculated by dividing a nation"s aggregate (or total) income by the number of people in that country. Income per capita in the united states is more than 2 times the level in. Portugal, 7 times the level in china, and 100 times the level in zimbabwe! Differences in income per capita are caused by institutional differences (so-called economic rules of the games) and political policies that impact them.