Learning Team Deliverable Week 4
Learning Team D – Walter Branch, Ramon Castillo, Barbara Farve, Kristofer Genilo ECO/561 – Economics
Measuring Domestic Output and National Income – Ch. 24
Kris is comfortable with the concept of gross domestic product (GDP) as it is the dollar value of goods and services in a country during a set period. Walter is comfortable with the GDP concept and understands that is the economic thermometer of the country’s current financial status. Topics Struggle
Kris still has to wrap his head around nominal GDP and real GDP when it comes to the GDP Price Index. So calculating real GDP is dividing nominal GDP by the price index. What is the difference between real GDP and nominal GDP? Walter also struggles with the concept of nominal GDP, and how it interacts with inflation. If GDP goes up and inflation goes down…it seems to be my understanding of the formula for calculating the nominal GDP that is holding me back. Application of topic
GDP is fluctuates with whatever final good or service is bought by a customer. Living through life affects the GDP. If the GDP declines for too long, economists normally label the economy as being in a recession.
Business Cycles, Unemployment and Inflation – Ch. 26
Kris is comfortable with the different business cycles and measurement of unemployment. These items also affect the GDP. Walter is comfortable with the different symptoms of a recession, a period of decline lasting more than six months in total output. Of which high unemployment rates is another tell of a recession.
Kris struggles with the concept of inflation and how it affects money today compared to money values in the past. Walter is struggling with defining a recession’s severity. Two examples given were the Great Depression and the recent recession in the last few years, Is the intensity or length of time that the recession lasts that makes one more severe than the other? Application of topic
The business cycle is very familiar in Kris’ organization as the company goes through yearly contractions and expansions based on the demand from consumers in the market. The business cycle is also something Walter is familiar with in the hotel industry. The hotel industry goes up and done depending the current state of the economy.
The Aggregate Expenditure Model – Ch. 28
Kris is comfortable with the concepts of equilibrium GDP and disequilibrium GDP. Equilibrium is the point where goods produced equals goods purchased. Disequilibrium is any situation where goods produced are greater than goods purchased and vice versa. Walter is comfortable with the concept of GDP equilibrium, The basic premise of this equilibrium being that supply meets demand. Topics struggle
Kris did not struggle with any concepts in the chapter, as they were all straightforward and easy to understand. Walter struggled with the concept of disequilibrium and how often, or what circumstances causes this to happen. I assume it is the opposite of the equilibrium and that demand supply exceeds demand but do not feel comfortable enough with the concept to say for sure. Application of topic
As such, Kris cannot think of a time where there was equilibrium GDP. In reality, consumer tastes vary and it would be difficult to reach equilibrium Walter thinks that when the economy is doing well the equilibrium can be met because consumers are finically settled to continue purchasing products and business continue to produce according to demand.
Aggregate Demand and Aggregate Supply – Ch. 29
Kris is comfortable with aggregate demand in which it shows the real GDP that consumers desire to purchase at different price levels. Aggregate supply shows the relationship between the price level and the output of producers. Walter is comfortable with the concept of aggregate...
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