Notes_ECO202_01 - Macroeconomics Theory and Policy...

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Macroeconomics Theory and Policy Masoud Anjomshoa 1 Masoud Anjomshoa 1 Macroeconomics Theory and Policy ECO202Y1Y Masoud Anjomshoa 2 Macroeconomics is concerned with the overall effects ( big picture ) of these choices that these economic agents make on the economy. What is Macroeconomics? . Macroeconomics is the study of the behavior of the aggregate economy, i.e. a large collection of economic agents, like aggregate consumption, aggregate output, aggregate investment, … Microeconomics is concerned with the choices of single economic agents such as households and firms, and so on.
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Macroeconomics Theory and Policy Masoud Anjomshoa 2 Masoud Anjomshoa 3 What is Macroeconomics? . Per capita output Masoud Anjomshoa 4 Macroeconomics: . - Keeping - Keeping - Keeping Objectives of Macroeconomics: - Aggregate output/income - Unemployment rate - Inflation rate Major Macroeconomics Variables: Î Keeping
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Macroeconomics Theory and Policy Masoud Anjomshoa 3 Masoud Anjomshoa 5 Economy circular flow Firms Revenue Income Factor Payments Private Saving Goods Market Financial Market Factor Market Capital Flow Taxes Firms Households Government Foreigners Investors Budget Deficit Consumption Export-Import Government Spending Investment Borrowing Inventories Masoud Anjomshoa 6 Measuring Output: GDP (Gross Domestic Product) . The market value of all final goods and services produced within a country in a given period of time. At the price which the good is transacted, not the one it should be, or believed to be fair.
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Macroeconomics Theory and Policy Masoud Anjomshoa 4 Masoud Anjomshoa 7 Measuring Output: GDP (Gross Domestic Product) . The market value of all final goods and services produced within a country in a given period of time. Not intermediate goods Three types of goods: - Consumption goods: Goods that are used in short period of time. - Capital goods : - Intermediate goods: Masoud Anjomshoa 8 Measuring Output: GDP (Gross Domestic Product) . The market value of all final goods and services produced within a country in a given period of time. Within geographical boundaries
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This note was uploaded on 10/08/2011 for the course ECO 202 taught by Professor Anjomshoa during the Fall '08 term at University of Toronto- Toronto.

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Notes_ECO202_01 - Macroeconomics Theory and Policy...

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