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Unformatted text preview: 1/10/11 Macroecomics Introduction • Macroeconomics- study of economic “aggregates” o Studying a system made up of tons and tons of people buying things o There has been a big push about behavior of economy being cumulative of everyone’s behavior in the economy Aggregates • Most important based on how much time is spent thinking about it: o <nominal>Gross Domestic Product (GDP)- The total value of all final goods and services produced in a particular place over a particular period of time by measuring the market prices (?) • Problem= double counting Important word is final- it means the product that you actually use “If I produce something and I haven’t sold it yet we pretend I sold it to myself at whatever market value is” Overtime ideally it should go up • Does not tell you much if it goes up year after year that could be because of some completely unrelated...
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This note was uploaded on 09/13/2011 for the course ECON 1012 taught by Professor Sameniego during the Spring '11 term at GWU.
- Spring '11