Notes - Macroeconomics o Study of the economy as a whole...

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

View Full Document Right Arrow Icon
Macroeconomics o Study of the economy as a whole Gross Domestic Product [GDP] o Measures the total quantity of goods/services produced in a country in a given period of time Usually measured quarterly (US) or yearly o High and quickly growing GDP is preferable Reflects lots of economic transitions that provide people with the goods/services they desire Only counts transactions involving money [not volunteer work, etc] o You can measure GDP by totaling up all the expenditures in economy or by counting up all the incomes Should be same value Income HAS to equal expenditure Economist prefer to use incomes because gov makes both individuals and firms keep track of income they receive so it can be tazed o Increases in GDP Typically the higher GDP is better because more output produced means higher living standards Often doesn’t guarantee increase in happiness because usually increases when bad things happen Ex. Hurricane destroys city, GDP increases as lots of new output is produced to replaced what was destroyed Countries whom experience rapid economic development and quickly rising living standards will result in a higher GDP Country will often get dirtier environments and more social unrest since some are getting richer faster than others
Background image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 3

Notes - Macroeconomics o Study of the economy as a whole...

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