Macroeconomics Notes 2-14-08

Macroeconomics Notes 2-14-08 - Macroeconomics Notes 2/14/08...

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Macroeconomics Notes 2/14/08 Test Review - Mixed economies - Market economies o Prices a allocative tool o Markets can be structured to be competitive or imperfect - Macroeconomics vs. microeconomics o The economy has many different sectors, and macroeconomics looks at the interaction between all these sectors GNP: Gross National Product (value of all the goods and services produced in the country) o Microeconomics looks at just one sector of the economy, such as the housing market or consumer spending Example: consumers spend $100 billion; why did consumers spend this much? o GNP = GNE (Gross National Expenditures) = GNI (Gross National Income) - Circular Flow of the Economy o Labor market provides services to factor market o Factor market provides services to businesses and business sector provides wages o Business sector provides the market with goods and services o The household and business sectors pay taxes to the government, and the government provides transfers - Laissez-faire economics
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This note was uploaded on 04/12/2008 for the course ECON 100 taught by Professor Park during the Spring '07 term at American.

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Macroeconomics Notes 2-14-08 - Macroeconomics Notes 2/14/08...

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