Download - Ec4004 Lecture1 Growth Matters
EC4004Lecture 13
Introduction to Macroeconomics
Text
Micro. O-vah.
Macro Weeks 7 - 12
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Ready?
6.7 Billion
300 born
Every.
Minute.
1/10 Born to Teenagers
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16/300
<5.
1 Mother will die
40,000 per month
2.3 billion tons of carbon dioxide
Per Month.
1/2
3 Tonnes
3 Tonnes
$65.61 trillion
2%
30%
4%
10% is Arable.
250,000km
322 Boundaries
194 independent states and 70 dependencies
Ethnicity
Culture
Race
Language
8.6 million refugees
87%
66
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Macroeconomics
Study of Economy as a whole
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All Households
All Firms
Government
Measure Output Each Year
ProduceConsume
InvestExportImport
GDP: Sum of all final goods and services produced in the economy
Example.
10* Guns20* Butter
Pguns = €10Pbutter = €5Value of output: 10*10+20*5 = 200
Growth of GDP
Growth rate of real GDP for year t=
(( Yt− Yt−1)/ Yt−1)− 1
Multiply by 100 to get the growth rate of real GDP in percent per year.
Example: Y2006=105; Y2005=100
Growth Rate = 105-100/100-1*100 =5%
Real GDP
Multiply each year’s quantity of output of each good by the price of the good in a base year.
GDP in constant Euros
Chain-weighted real GDP
(nominal GDP)/(implicit price level) = real GDP
or
implicit price level = (nominal GDP)/(real GDP)
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Next Time
Growth TheoryRead Barro Chapters 2&3
EC4004Lecture 13
Introduction to Macroeconomics