Chapter 8- Savings and Investment, and the Financial System
The financial system consists of those institutions in the economy that helps to match
one persons saving with another persons investment.
Saving and investment are key ingredients to long-run ec
Ten Principles of Economics
University of Ottawa ECO1102 B
Midterm # 1 (October 21, 2011)
Instructions: Please fill in your name and student number on every page of the exam questionnaire and on
the NCS sheet. Use the NCS sheet to answer the Multiple Choice que
Universit dOttawa/University of Ottawa
Facult des sciences sociales /Faculty of Social Sciences
Science conomique/Economics Department
INTRODUCTION TO MACROECONOMICS
Course schedule: Wed. from 13:00 to 14:30 and Friday f
Chapter 12- introduction to open-economy macroeconomics.
So far our development of macroeconomics has largely ignored the economys
interaction with other economies around the world. To keep their analysis simple,
macroeconomists often assume a
Chapter 14- Aggregate Supply and Aggregate Demand
In most years, the production of goods and services rises. Because of increases in the
labour force, increases in the capital stock, and advances in technological
knowledge, the economy can produce more an
Chapter. 10 the Monetary system
Money supply (i.e., money stock)
o Currency and demand deposit (m1)
The bank of Canada:
o Serves as the nations central bank
o Control the money supply
o Commercial banks creates money
o The mon
How to monitor the performance of an economy.
Gross Domestic Product (GDP)
-the market value of all final goods and services produced within a country in a given
period of time (loosely speaking, it is how much a country is producing).
This increase in the overall level of prices is called inflation.
There were long periods in the nineteenth century during which most prices fell a
phenomenon called deflation. The average level of prices in the Canadian economy was
37 percent lowe
Chapter 10- Money and Prices in the Long Run
Economists, however, use the word in a more specific sense: Money is the set of assets in
the economy that people regularly use to buy goods and services from other people.
According to the economists definitio
Chapter 5- Measuring a Nations Income
GDP measures two things at once: the total income of everyone in the economy and the
total expenditure on the economys output of goods and services. The reason that GDP
can perform the trick of measuring both total in
We need to find some way of turning dollar figures into meaningful measures of
purchasing power. That is exactly the job of a statistic called the consumer price index.
The consumer price index is used to monitor changes in the cost of living ov
The Growth Rate of GDP per person
The growth rate of 2.04 percent per year ignores short-run fluctuations around the longrun trend and represents an average rate of growth for real GDP per person over many
The amount of goods
Chapter 9- Unemployment and its Natural Rate
The economys natural rate of unemployment refers to the amount of unemployment
that the economy normally experiences.
The designation natural does not imply that this rate of unemployment is desirable. Nor
Jabir Bin Hayyan: The
Father of Chemistry
Islamic history is full of internationally recognized
and renowned polymaths who laid the foundations
of the modern scientific knowledge. From 8th till
13th century, the world witnessed the grandeur