University:
University of Toronto
Course:
ECO102 | Principles of Macroeconomics
Academic year:

2023
Views:

173

Pages:

9
Author:

Arlene R.

1. Micro vs. Macro b. Role of Government & c. Prediction of how Gov will Manage "big costs for unemployment, room for gou to step in MACROECONOMICS is a theory of how the gou should behave KANSIAN ECONOMICS says if pt, gou should step in 8 sbw down the economy if pt, you should step on the gas (speed up the economy) 2. Long Term Growth a. Rule of 72 (time to double the economy) rule of 72 take the # 72 & divide it by the interest rate you hope to earn Ex. * economy growing 2% a year 72/2-36 4it would take 36 years to double با economy growing 12% a year 72/12-6 4 takes 6 years to double different countries grow different rates countries that are currently developing grow quickly •countries that industrialized centuries ago grow slowly (or slower) 3. Labour Markers vs. Demographics a. Population Pyramid "youngest the bottom, oldest the top (age) women on the left, men on the right (gender) BABY BOOM 4 men came back from WW2 & had a lot of Kids (BABY BOOM) the BABY BOOMERS also had a lot of kids (ECONOMIC BOOM) b. GDP GDE GDI income product expenditure GNP (Gross National Product) ها Luxembourg Story POP doubles on Monday bic people come to work & therefore contribute to GDP but not GNP "GNP only comes from citizens C. Value Added D. National accountants recorded the following transactions. Farmers harvested 1 000 bushels at 1 euro per bushel. They paid salaries of 600 euros. Miller's purchased the entire output of the sector. They paid salaries of 400 euros and produced 800 kg of flour at 2 euros per kg. Bakers purchased 800 kg of flour at 2 euros. They paid workers 700 euros and produced loaves of bread which were sold to domestic households for 1.5 euro per loaf. There are no exports, government, or taxes in this economy. Demonstrate the calculations of GDP, GDE & GDI