Macroeconomic Conditions and Selected Trends Gross Domestic Product (GDP) is an economic indicator used to measure a country’s total output. It includes everything produced by all the people and companies in the country. In order to compare GDP from one year to the next it is important to use what is known as Real GDP. Real GDP makes a distinction by forgoing income from U.S. companies and people outside the country‚ which would contribute to GNI‚ removing the effects of inflation and only counting
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Natural Phenomenon The global warming subject has been a heated debate for the past few decades. Some scientists are saying this is a completely man made problem. There are two clear sides to this subject and both have evidence‚ but the evidence is stronger on that global warming is just Mother Nature at work. The government has poured hundreds of millions of tax payer dollars into research for manmade global warming. The theory is that humans are causing the “greenhouse effect” and putting too
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Tommy Deen November 28‚ 2006 ECO 201 The Microeconomics of the Video Game Industry Video games have been around for years with many different types of consoles and games. The video game industry has grown into a $20 billion dollar industry over the past ten years‚ and it only shows signs of growing larger in the years to come. In the United States alone‚ the market has grown considerably where 60% of all Americans play video games‚ 40% are women‚ and 60% of all gamers are between the ages
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consumers to changes in price? Economists use percentages rather than absolute amounts for two different reasons. The first reason for using percentages rather than absolute amounts has to do with the affect a particular amount can have on demand. The example in our book refers to using dollars or pennies‚ in one instance the dollar amount leads to a demand that is elastic‚ however that same dollar amount in pennies would lead one to see that demand is inelastic. The amount is the same‚ regardless of the
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Macroeconomics textbook notes Chapter 2: A Tour of the Book 2.1 Aggregate Output Aggregate: means “total” The measure of aggregate output in the national income accounts is gross domestic product (GDP) 3 ways of thinking about an economy’s GDP GDP is the value of the final goods and services produced in the economy during a given period Intermediate good is a good used in the production of the final goods and is not counted toward GDP GDP is the sum of value added in the Economy during a given
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Chapter 2. Demand and Supply Markets A market is where buyers and sellers come together to carry out an economic transaction. Markets may be physical places where goods or services are exchanged for money‚ but there are other ways that economic transactions may be made‚ such as online markets. Product markets: the place where goods and services are bought and sold Factor markets (labor market): the place where the factors of production are bought and sold. Financial markets (e.g. foreign
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concepts‚ 2) your reasoning and 3) concluding paragraph which states the final answer. Part 1 problem 1: Refer to the table below. Suppose that aggregate demand increases such that the amount of real output demanded rises by $7 billion at each price level. By what percentage will the price level increase? Will this inflation be demand-pull inflation or will it be cost-push inflation? If potential real GDP (that is‚ full-employment GDP) is $510 billion‚ what will be the size of the positive
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demanded)/(percentage change in price). It isn’t measured by the slope of the demand curve because the slope depends arbitrarily on what units you are using. Slope will change by a factor of 100 if you use cents instead of dollars‚ for example. Or‚ for another example‚ consider six-packs of soda versus cans of soda: If the price drops by $1.00 per six-pack and this causes quantity demanded to increase by two six-packs‚ then that is the same thing as quantity demanded going up by 12 cans. So‚ you
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The difference between explicit & implicit costs Wages‚ interest‚ rent are explicit costs whereas the perceived value of the entrepreneurial talent is implicit cost. 7. Marginal revenue is the amount by which total revenue (TR) changes with each additional unit of output sold. 8. Average revenue is the revenue per unit of output. 9. Total costs represent the wages of the workers and the costs for capital and land (equals to total fixed cost plus total variable cost). 10. Total variable
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Introduction Competition is understood differently by different people and it has also changed its colour‚ course and complexion over a period of time. As of now it is an all pervasive phenomenon and people tend to believe that there cannot be progress without competition. We have reached a level where it seems to be taken for granted- individuals have to be competitive‚ companies have to be competitive and even countries have to be competitive. Every organized activity even outside the domain of
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