ECON102 Study Guide - Final Guide: Canada Pension Plan, Canadian Tire, Final Good

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Maryann Vaughan

Document Summary

Macroeconomics the study of economy-wide phenomena, including inflation, unemployment, and economic growth. Its basic building block is gdp (gross domestic product) When judging how healthy and how well the economy is doing overall economists use the total income of the economy, in other words the gdp. The gross domestic product measure 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. For an economy as a whole, income must equal expenditure. Because every transaction has two parties, a buyer and a seller. Because all expenditure in the economy ends as someone"s income, gdp is the same regardless how its computed. Gross domestic product is the market value of all final goods and services produced within a country at a given time. Gdp is the market value usually you couldn"t compare two different things because they are measure differently, however, that"s exactly what gdp does.