Macro, class 1 - Date: sept 15 What is economic activity?...

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Date: sept 15 What is economic activity? Anything that involves a transaction in which money has been exchanged for the purchase of goods/services of real and useful value that been created or transformed. National and expenditure accounts – reported by statistics Canada (on an annual or quarterly bases) They provide information directly or indirectly on the 6 main key macro variables. 1. Real GDP 2. Unemployment rate 3. Inflation rate 4. Interest ate 5. Stock market index 6. Exchange rate 1. Real GDP is the production of all final goods and services that are produced within a given country within a given period of time, in real terms. Gross Domestic Product? Measures of economic activity are either in gross or net output . Gross, includes the work-out replacement of depreciated capital, and includes both new investment and replacement capital. Net , only new investment added to your stock. Sometimes it is hard to determine what is new investment and what is old investment, therefore we usually go with the gross investment. Domestic: only within Canada, regardless of the owner, Ex: if an American company is producing in Canada, it is a part of Canada National: All goods produced by Canada. Ex: If a Canadian company is going to include a Canadian company producing in Germany. Product: productions of good that are either used for consumption, investment goods that business buy in order to produce their of output, government services, ex bridges
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Macro, class 1 - Date: sept 15 What is economic activity?...

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