ECON 1BB3 Introduction to Macroeconomics
Classical theory of inflation
price of a good reflects value
As the price level rises:
money value decreases (only used fo transactions)
demand for money (from households) increases need
more money to buy the s
ECON 1BB3 Introduction to Macroeconomics
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Money
money: an asset that people regularly use to buy goods
and services from other people
money has 3 functions:
1. medium of exchange: an item that buyers give to
sellers for purchasing goods and services
ECON 1BB3 Introduction to Macroeconomics
Statistics Canada divides the NON-INSTITUTIONAL adult
population i(age > or = 15) nto three categories:
1. Employed an individual who has spent time
working at a paid job for some of the past
week
2. Unemployed an
What do the terms saving and investment mean to an
economist? how interest rates are determined in the
long-term
ECON 1BB3 Introduction to Macroeconomics
Financial institutions in Canada can be grouped into two
categories:
1) Financial markets (directly l
ECON 1BB3 Introduction to Macroeconomics
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Productivity
productivity: the quantity of goods and services that a
worker can produce for each hour of work
determinants of productivity:
1. physical capital
2. human capital
3. natural resources
4. tec
ECON 1BB3 Introduction to Macroeconomics
10 Principles of Economics
HOW PEOPLE MAKE DECISIONS-Scarcity: Resource
Allocation leading to efficiency.
1. People face tradeoffs
2. The cost of something is what you give up to get itOpportunity Cost NO FREE LUNC
