Macroeconomics

what is macroeconomics

Gross Domestic Product (GDP)

the value of everything produced

29 Trillion

Americas GDP

Nominal GDP

(comparing within a single year) Adjusting changes in price over time, also useful to use if you want to compare to other countries

GDP Measurment formula

C + I + G + (Exports - Imports)

Demand-pull

 Consumers are willing to buy something for way more money if there is a lot od demand for it 

Hyperinflation

When there's too much inflation

Underemployment

you are working, pursuing a job, but overqualified for the job. Not considered unemployment. 

Unemployment

without a job

Supply

as the price goes up the quantity supplied also increases if you price a shampoo bottle for one dollar you would only wanna sell one as u only make one dollar why make more? But if a shampoo bottle was 10 dollars you wanna make 10 bottles of shampoo as you make more money as a supplier. (maximize your profits) supply line going up

Middle point- Equilibrium price

(the point where things are usually bought by consumers and sold by suppliers) 

Shortage

Demand < Supply

Surplus

Supply < Demand

Complements

Things you buy alongside other things

Substitutes

Things you use instead of the real product such as instead of sugar, you use splendid

Utility

benefit or wanting for something

Marginal

With one more

Example of Marginal Utlity

Ella eats 8 slices of pizza as she is very hungry (utility). She eats one more and then one more (marginal) and all of a sudden she starts to feel fat. What example is this

Elastic demand

substituted and unneeded products. if the price changes or supply changes the demand will also change. (stretches) 

Inelastic

utilities that are needed no matter what. Suppose the product is inelastic, whether the price goes up or down the demand for the product won't change. Usually necessities (gas, electricity, water)

What determines demand

T.R.I.B.E

What is TRIBE

Taste, related goods, income, buyers, expectations

What determines supply

S.E.C.T

What is SECT

substitutes, expectations, cost of inputs, technology

What are factors of production

land, labor,capital

What is a factor market (input)?

Firms buy, households sell (by working)

Product Market  (output)

Individuals are buying products in this market, goods and services are being purchased.