Lecture4 - Macroeconomic Variables Ariel Singerman January...

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Unformatted text preview: Macroeconomic Variables Ariel Singerman January 23, 2008 Ariel Singerman () Macroeconomic Variables January 23, 2008 1 / 13 The data of Macroeconomics Three statistics that macro-economists often use are: Gross Domestic Product (GDP) Consumer Price index (CPI) Unemployment rate Ariel Singerman () Macroeconomic Variables January 23, 2008 2 / 13 Gross Domestic Product (GDP) - I GDP: is often considered the best measure of how well the economy is doing summarizes in a single number the dollar value of economic activity in a given period of time Two ways of viewing it: 1 Total expenditure on the economys output of goods and services 2 Total income of everyone in the economy These two views are equivalent because for the economy as a whole, income must equal expenditure. Ariel Singerman () Macroeconomic Variables January 23, 2008 3 / 13 Gross Domestic Product (GDP) - II Definition Output view The GDP is the market value of all final goods and services produced within an economy in a given period of time. Income view The GDP is the income of everybody within an economy in a given period of time. Ariel Singerman () Macroeconomic Variables January 23, 2008 4 / 13 Computing Gross Domestic Product (GDP) There is a vast number of goods and services in a real economy, and there are also different stages of production. Therefore, when computing the GDP there are different goods we could encounter. Used goods: the sale of used goods is NOT included as part of the GDP....
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This note was uploaded on 03/27/2008 for the course ECON 102 taught by Professor Singerman during the Spring '08 term at Iowa State.

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Lecture4 - Macroeconomic Variables Ariel Singerman January...

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