ECON 2N03 Study Guide - Final Guide: Capacity Utilization, Government Spending, Flattening
14 Dec 2018
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Document Summary
Macroeconomic policy makers tend to focus on three variables: unemployment, inflation, per capita real gdp. It is the total dollar value of all goods and services produced over a specific time period the size of the economy. Gdp = consumption + government spending + investment + net exports. When the economy is healthy, you typically see: low employment, higher wage adjustments, growing business demand, higher profits, stock growth. Includes items of questionable value: transfer seeking activities, does not include environmental damage, actual trends, less primary and secondary goods production; more services, gdp growth is slowing. Labor force participation increased significantly from the 1960s until 2000, largely driven by increased female labor force participation. Flattening female participation inf the workplace since 2000. The economy comprises 2 broad categories: goods, primary industries, agriculture, fishing, energy, mining, resources, secondary industries, manufacturing, construction, services, financial, healthcare, education, government admin, personal and business service, retail, wholesale. Common industry definitions for canada, mexico, and the us.
