{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

1-30-07 - • When GDP is below 3 unemployment will...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Macro-Economics Lecture 1/30/07 GDP – Anything productive, productive activities Unemployment – Anyone 16 years or older that isn’t retired that is unemployed and looking for jobs Potential GDP – Assumes that all economic resources are fully employed Okun’s Law: DY/Y = 3.0 – 2.5DU When GDP stays the same, unemployment will remain the same When GDP is above 3%, unemployment will decrease
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: • When GDP is below 3%, unemployment will increase GDP Deflator – Measure of inflation for all of the goods When the index rises we have inflation, when the index lowers we have deflation High government spending crowds out investment in the economy 20% of our GDP is government 9% of our GDP is private investment...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online