UNIT 2
ECONOMICS
,Chapter 2
Economics
L -
microeconomics macroeconomics
the
study of individual the study of the
market within economy as a whole
an economy
* The measure of output is called GDP /Gross domestic product)
of how much output has increased
* The economic growth is a measure
by over 12-month period expressed as a
percentage
* Recession means an has experienced negative economic growth
economy
over at least 2 consecutive quarters.
* Unemployment represents a waste of resources and leads to
of those who out ot work
poverty are .
* Inflation is increase in
average prices in an
economy
.
* Deflation falling prices
Balance of payments
* Exports -
products sold abroad
* Imports -
products bought from abroad
*
Exports Imports balance of trade surplus
* Exports Imports balance of trade deficit
Chapter 22
Economic growth ,
GDP GNI
GDP the value of all the produced
goods and services period
-
over a
of time
(usually 1 year). Includes the value of indirect taxes .
GNI-GDP plus net interest and dividends
overseas
payments
, GDP 1 It is main measure used for national income
2 The data to calculate it is most quickly available
3 When time and between countries movements in
comparing over
,
GDD at market prices are broadly similar to movements in other
measures of national income .
nominal value -
don't adjust to inflation
real value -
adjusts to inflation
Volume of national income measures the relative size of the basket (goods serv)
,
Value of national income measures the cost of the basket at a
given price level
Value =
Volume x current price level
The annual %
change in real GDP determines economic growth rate .
nominal GDP and GNI don't show changes in the volume of national income
per capital per head dividing national income by the population size
-
· Some incomes are received without a new output produced in the
not included national income calc
economy and these incomes are in .
I parent giving pocket money ,
individual selling a second-hand car)
Why is National income measured ?
for economists to test hypothesis and build models of the economy
·
to use it to forecast changes in the economy
·
to make comparison over time and between countries
to make judgements about economic welfare ; measure standards of living
The Accuracy of National Income
·
Statistical Inaccuracies ·
Home -
Produced Services (subsitence farming
·
The Hidden Economy
·
The Public Sector (output can be undervalued
ECONOMICS
,Chapter 2
Economics
L -
microeconomics macroeconomics
the
study of individual the study of the
market within economy as a whole
an economy
* The measure of output is called GDP /Gross domestic product)
of how much output has increased
* The economic growth is a measure
by over 12-month period expressed as a
percentage
* Recession means an has experienced negative economic growth
economy
over at least 2 consecutive quarters.
* Unemployment represents a waste of resources and leads to
of those who out ot work
poverty are .
* Inflation is increase in
average prices in an
economy
.
* Deflation falling prices
Balance of payments
* Exports -
products sold abroad
* Imports -
products bought from abroad
*
Exports Imports balance of trade surplus
* Exports Imports balance of trade deficit
Chapter 22
Economic growth ,
GDP GNI
GDP the value of all the produced
goods and services period
-
over a
of time
(usually 1 year). Includes the value of indirect taxes .
GNI-GDP plus net interest and dividends
overseas
payments
, GDP 1 It is main measure used for national income
2 The data to calculate it is most quickly available
3 When time and between countries movements in
comparing over
,
GDD at market prices are broadly similar to movements in other
measures of national income .
nominal value -
don't adjust to inflation
real value -
adjusts to inflation
Volume of national income measures the relative size of the basket (goods serv)
,
Value of national income measures the cost of the basket at a
given price level
Value =
Volume x current price level
The annual %
change in real GDP determines economic growth rate .
nominal GDP and GNI don't show changes in the volume of national income
per capital per head dividing national income by the population size
-
· Some incomes are received without a new output produced in the
not included national income calc
economy and these incomes are in .
I parent giving pocket money ,
individual selling a second-hand car)
Why is National income measured ?
for economists to test hypothesis and build models of the economy
·
to use it to forecast changes in the economy
·
to make comparison over time and between countries
to make judgements about economic welfare ; measure standards of living
The Accuracy of National Income
·
Statistical Inaccuracies ·
Home -
Produced Services (subsitence farming
·
The Hidden Economy
·
The Public Sector (output can be undervalued
