ECN001B: Principles of Macroeconomics

Incomplete

This page is not a complete account of what was taught in this class.

• scarcity

• economics

• market, market economy

• gross domestic product

• gross national product

• net national product

• national income

• personal income

• disposable personal income

• CPI

• opportunity cost

• productivity determinants

• factors of production

• catch-up effect

• public savings, national savings

  • GDP = C + I + G + N,
  • For closed economy (N=0), National Savings (NS) = GDP - C - G. In other words, the national savings are the investment component of GDP.
  • 11000 - 7500 - 2000

• $V_T=\frac{PT}{M}$

  • $V_T$: velocity of money for transactions in a given time period
  • $P$: price level
  • $T$ or $Y$: aggregate real value of transactions in a given time period
  • $M$: total nominal amount of money in circulation on average in the economy