BasicMacroConcepts

BasicMacroConcepts - i The value of all final goods and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Macro Concepts Ways to compute a country’s output -GNP/GDP-goods and services -income approach (1) The business cycle is the short run alternation between economic upturns and downturns (2) A depression is a very deep and prolonged downturn (3) A recession is a period of an economic downturn when output and employment are falling (4) An expansion, sometimes called a recovery is an economic upturn when output and employment are rising (5) Peaks and troughs a. Peak trough, economic recession b. Trough peak, economic expansion c. Peak peak or trough trough: cycle (6) Business cycles are measured in quarterly data a. NBER calls recessions (contractions) and expansions b. Longer expansion-Clinton Administration c. Example: 1945-2001-NBER counted 10 cycles in the US economy Measuring output and unemployment (1) output a. GNP-gross national product i. The value of all final goods and services produced by a country’s factor of production b. GDP-gross domestic product
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: i. The value of all final goods and services produced within a country’s borders Comments: -GDP is used now by most developed economic, not GDP, to measure a country’s output -the rise of the multinational corporation -GNP is often preferred by developing countries -GNP>GDP-more factors overseas than foreign factors in your country -in the past, feminists have argued that GDP/GNP does not appropriately account for work done in the home -environmental friendly shopping-used goods has an impact on GDP/GNP Measuring Unemployment -employment is the number of people working in the economy -unemployment is the number of people currently looking for a job but aren’t currently employed -labor force=employment+ unemployment -unemployment rate=(unemployment/labor force) *100 Comments: =disgruntled workers are neither unemployed nor part of the labor force -underemployed workers are considered employed...
View Full Document

This note was uploaded on 03/11/2011 for the course ECON 012 taught by Professor Joutz during the Spring '08 term at GWU.

Page1 / 2

BasicMacroConcepts - i The value of all final goods and...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online