[EC140] - Final Exam Guide - Comprehensive Notes fot the exam (88 pages long!)
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EC140 Full Course Notes
Verified Note
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Document Summary
Macroeconomics is the study of how to economy behaves in board outline without dwelling on much of the detail that occurs in markets for individual products. Value of total production of goods and services- national product / output/ Nominal national income- national income in current prices. Real national income- national income in base year prices. The major movement is a positive trend- long-term economic growth. Business cycle- fluctuations of national income around its trend value that follow a more or less wavelike pattern. Potential output- the real gdp that the economy would produce if its productive resources were fully employed. Output gap- measures the difference between potential output and actual output. Trough- a level of output that is low in relation to the economy"s capacity to produce. Recovery- when the economy moves out of the trough. Depression- recession that is deep and long lasting. Employment- the number of adult workers who have jobs.
