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W EEK 1: E CONOMIC A CTIVITY & P ERFORMANCE Md. Nazmul Ahsan Department of Economics Concordia University [email protected] Economics 203: Introduction to Macroeconomics M D . N AZMUL A HSAN I NTRODUCTION TO M ACROECONOMICS S EPTEMBER 6, 2019 1 / 25
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K EY I NDICATORS M ACROECONOMIC PERFORMANCE C ANADIAN E CONOMIC P ERFORMANCE A PPENDIX O UTLINE 1 K EY I NDICATORS 2 M ACROECONOMIC PERFORMANCE 3 C ANADIAN E CONOMIC P ERFORMANCE M D . N AZMUL A HSAN I NTRODUCTION TO M ACROECONOMICS S EPTEMBER 6, 2019 2 / 25
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K EY I NDICATORS M ACROECONOMIC PERFORMANCE C ANADIAN E CONOMIC P ERFORMANCE A PPENDIX K EY I NDICATORS Macroeconomics is focused on three key indicators of the economy’s performance and the underlying explanations for their behaviour. The indicators are: 1 The rate of growth of real national income. 2 The rate of inflation. 3 The rate of unemployment. Other important aspects of the economy are: Interest rates, foreign exchange rates, wage rates, government budgets, capital investment, commodity prices, housing prices M D . N AZMUL A HSAN I NTRODUCTION TO M ACROECONOMICS S EPTEMBER 6, 2019 3 / 25
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K EY I NDICATORS M ACROECONOMIC PERFORMANCE C ANADIAN E CONOMIC P ERFORMANCE A PPENDIX M ACROECONOMIC P ERFORMANCE Key dimensions of macroeconomic activity. Output: — Output is a measure of the total quantity of goods and services produced in the economy. Price Level: — Price or the price level in macroeconomics is the weighted average of the market prices of all final goods and services produced. The price level reflects the costs of production in the economy. Employment: — Employment is a measure of the number of jobs involved in the production of goods and services, or, — the number of hours of labour input required to produce the economy’s output. M D . N AZMUL A HSAN I NTRODUCTION TO M ACROECONOMICS S EPTEMBER 6, 2019 4 / 25
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K EY I NDICATORS M ACROECONOMIC PERFORMANCE C ANADIAN E CONOMIC P ERFORMANCE A PPENDIX U NIT OF O UTPUT M EASURE — Output and its rate of growth are measured in terms of real gross domestic product (real GDP) . — It is the quantity of final goods and services produced in the economy in a specific time period, such as one year, measured in the market prices of a base year 2007 — or — It may also be called GDP in constant 2007 dollars). —The production of goods and services generates incomes equal to the value of those goods and services. As a result, real GDP is also the real income in the economy and the quantity of goods and services the economy can afford to buy. Real GDP : the quantity of final goods and services produced by the economy in a specified time period. M D . N AZMUL A HSAN I NTRODUCTION TO M ACROECONOMICS S EPTEMBER 6, 2019 5 / 25
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K EY I NDICATORS M ACROECONOMIC PERFORMANCE C ANADIAN E CONOMIC P ERFORMANCE A PPENDIX W HY R EAL !
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