ECO 1002: Introduction to Macroeconomics - The Macroeconomic Perspective

These flashcards cover key concepts from the lecture on macroeconomics, focusing on GDP, economic measurements, and essential economic indicators.

The dollar value of all final goods and services produced within a country in a given time period is known as __.

Gross Domestic Product (GDP)

Gross Domestic Product via the Expenditure / Demand Approach is represented by the equation GDP = __.

C + I + G + (X - M)

In the GDP equation, C stands for __.

Consumption (or Consumer Spending)

Investment (I) in the GDP equation includes new commercial real estate, new equipment, and __.

Residential housing construction

Government Spending (G) in the GDP formula includes purchases of goods and services, excluding __.

Transfer payments such as social security and Medicare

Net Exports (X - M) is calculated by subtracting from .

Imports from Exports

To isolate the true size of the economy, we need to calculate a __ value adjusted for inflation.

Real

A significant issue with nominal measures is it reflects both changes in production and __.

Aggregate prices (inflation)

Tracking an economy’s production, we want to use __ variables to avoid confusion with price changes.

REAL

An economy's movement between peaks and troughs is known as the __.

Business Cycle

Real GDP per Capita is calculated by dividing the real GDP by __.

Population

Aggregate economic output is simply a measure of total __ activity.

Economic