ECON 1100 Study Guide - Final Guide: Disposable And Discretionary Income, Aggregate Demand, Dependent And Independent Variables
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Macroeconomics: economic behavior of individuals and, deals with aggregate output, price levels, firms unemployment, inflation and the. 1. 2 1. 3 methodology of economics / use of graphs in economics: economic phenomena are complex economists" model economic behavior economists make assumptions reduces complexity, dependent variable the behavior being explained. Independent variable the variables doing the explanation: ceteris paribus all other independent variables are held constant, disposable income income after all deductions y dependent factors. Independent x independent factor or things that drive the dependent. Demand = f (price, income, price of complements, taste, price of substitutes) independent. 2. 2 the production possibility frontier (ppc: ppc the maximum amount of the combination of goods and services in a society can produce at a given time when there is full utilization of economic resources and technology. Improvement of technology or new technology ppc will shift (up and out) Demand = (willingness + ability to pay) you must have both.