ECON 1P92 Midterm: ECON 1P92, Term Test 1
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ECON 1P92 Full Course Notes
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Total production in the economy, not the production by individual firms. Total output produced is the total value of all goods and services produced. The quality of total output (nominal national income) (current $) The time/dollar value of total output nominal national / income. If price level changes over time are removed only changes in production remain. Potential gdp is referred to as [ y* ] What the economy could produce if all resources were employed at their normal levels of utilization. Is the difference between potential and actual output. Denote potential output by y* and actual output by y: An output gap can be either a recessionary (deflationary) gap or inflationary gap. When actual income (output) is less than potential income. When actual income (output) exceeds potential income. Number of adult workers (is and over) who holds jobs (employment) Number of adult workers (15 and over) who hold jobs.
