Chapter Two Observing and Explaining the Economy
-Economics, an Overview
Now that we know what economics is from Chapter 1, we need to understand the usefulness of economics by understanding the economic way of thinking. Economics entails: accurat
ECON 201 (01) & (02)
Homework 2 Solution
3. a. The percentage change in the price of tennis balls is ($2 $2)/$2
100 = 0%.
The percentage change in the price of golf balls is ($6 $4)/$4 100 = 50%.
The percentage change in the price of
ECON 201 Notes
Chapter 7: Real Economy in the Long Run: Production and Growth
Real GDP = the real basket of goods and services
% change in RGDP = economys growth rate over a given time period
Rising positive growth rate = economic boom or good economic he
ECON 201 Chapter 5 Notes: Measurement of national income and output - national income
Gross Domestic Product (GDP) is the market value of all final goods and services produced
within a country during a given time period.
Different methods of me
ECON 201: Chapter I Notes - Introduction
The broad goals:
Real world macroeconomic problems the causes and solution: some examples
Develop the basic economic principles and simple macroeconomic models to
analyze the macro problems and solutions
ECON 201 Notes
Chapter 6: Measuring Cost of Living: Inflation
Consumer Price Index (CPI): Measure of the overall cost goods and services
bought by consumers.
Computation of CPI: 5 steps
Step 1: Choose a fixed quantity basket of goods consumed by a standar