Negocios

Chapter 19
Macroeconomics: Is the study of the behavior of the economy as a whole. It examines the forces that affect firms, consumers, and workers in aggregate.
Business cycle: the short-term fluctuations in output, employment, financial conditions, and prices. All marker economies show patterns of expansion and contractions.

Economic growth: The longer-term trends in output and livingstandards.
Inflation: a phenomenon when prices are rising.
Gross domestic product (GDP) is the most comprehensive measure of total output in an economy, Is the measure of the market value of all final goods and services produces in a country.
There two ways to measure GDP
* Nominal GDP measuring actual prices.
* Real GDP measuring in constant prices.
The difference between the two typesof GDP is the price of GDP sometimes called the GDP deflator.
Potential GDP: represents the maximum sustainable level of output that the economy can produce.
Unemployment rate: on the vertical axis is the percentage of the labor force that is unemployed.
Labor force includes all employed people and those who don’t but still looking for one and excludes unemployed people who are not looking for ajob.
Price stability is defines as a low and stable inflation rate.
Economist measures price stability by looking at inflation, or the rate of inflation.
Monetary policy is when the government conducts through managing the nation’s money, credit, and baking system.
A nation has two major kinds of policies that can be used to pursue its macroeconomics goals.
* Fiscal policy consists ofgovernment expenditure and taxation.
* Monetary policy which is conducted by the central bank determines short-run interest rates.
Aggregate supply refers to the total quantity of goods and services that the nation’s businesses wiling produce and sell in a given period.
Aggregate demand refers to the total amount that different sectors in the economy willing spend in a given period.
Thedownward-sloping curve is the aggregate demand schedule, or AD curve. It represents what everyone in the economy would buy at different aggregate prices levels.
The upward-sloping curve is the aggregate supply schedule, or AS curve. This curve represents the quantity of goods and services that businesses are willing to produce and sell at each price level.
We use the AS and AD concepts to see howequilibrium values or price and quantity are determined or to find the P and Q that satisfy the buyers and sellers.
A macroeconomic equilibrium is a combination of overall price and quantity at which all buyers and sellers are satisfied with their overall purchases, sales and prices.
Chapter 20 Measuring economic activity
Gross domestic product (GDP) is the name of the total market value of thefinal goods and services producer within a nation during a given year. It’s the sum of dollar values of consumption (C) ,gross investment (I), government purchases of goods and services (G), and net exports (X)

GDP = C + I + G + X
Two measures of national Product: Goods flow and Earnings flow
Consumption goods are items that are purchased by households to satisfy their wants
*Flow-of-product approach includes only final goods – goods ultimately bought and used by consumers.
* Earnings or income approach (also called the earnings or cost approach) all the cost of doing business, these costs include wages, paid to labor, the rent paid to land, the profits paid to capital, and so forth.
Even though using both of the approach at the end there are exactly the same.
Finalproduct is one that is produced and sold for consumption or investment. If they are not bought by consumers, they never show up as final products.

GDP excludes intermediate goods, - goods that are used up to produce others goods.
Value added is the difference between a firm’s sales and its purchases of materials and services from other firms.
Investment consists of additions to the nation’s...