New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here


Star Star Star Star Star
1 review
by: Christina Smith


Marketplace > Georgia State University > Economcs > 2105 025 > CHAPTER 6 OF MACROECONOMICS
Christina Smith
GPA 3.7
View Full Document for 0 Karma

View Full Document

Mr. Apperson

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Get these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Unlock These Notes for FREE

Enter your email below and we will instantly email you these Notes for Macroeconomics

(Limited time offer)

Unlock Notes

Already have a StudySoup account? Login here

Unlock FREE Class Notes

Enter your email below to receive Macroeconomics notes

Everyone needs better class notes. Enter your email and we will send you notes for this class for free.

Unlock FREE notes

About this Document

These notes are from in class lectures, quizzes and the Macroeconomics book
Mr. Apperson
Class Notes




Star Star Star Star Star
1 review
Star Star Star Star Star
"These are great! I definitely recommend anyone to follow this notetaker"
Amelia Reynolds

Popular in Macroeconomics

Popular in Economcs

This page Class Notes was uploaded by Christina Smith on Sunday January 24, 2016. The Class Notes belongs to 2105 025 at Georgia State University taught by Mr. Apperson in Winter 2016. Since its upload, it has received 69 views. For similar materials see Macroeconomics in Economcs at Georgia State University.



Star Star Star Star Star

These are great! I definitely recommend anyone to follow this notetaker

-Amelia Reynolds


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/24/16
CHAPTER 6 VOCABULARY amp NOTES Macroeconomics The study of the economy of the entire nation or society Determines what happens with the output of goods and services as they rise and fall Microeconomics The behavior of individual people rms and industries 0 Determine people s decisions and how rms can compete with competitors GDP Gross Domestic Product 0 Measures Living Standards Ability to have life s bare necessities as well as education 0 Measures Economic Growth 0 Measures Business Cycles 0 The market value of all FINAL goods and services produced within a nation during a speci c period of time 0 Measures a nation s income and output 0 The sum of at businesses that produce goods 0 Money received for services is included in GDP and calculated using market values WHY MEASURE GDP To nd Living Standards Growth How is it going to be 10 years from now Track shortrun business cycles WNH Per Capita GDP per person GDP divided by population 0 Average living standards in a nation Per Capita GDP 0 GDP per person 0 Dividing the countries GDP by its population Real Capita GDP 0 Generally looking at data over time 0 May not always be the best standard to compare countries 0 Doesn t adjust for population size of country Real GDP 0 Adjusted for changes in prices Anytime GDP is evaluated over time we have to use real GDP so that we can nd in ation Measure of the value of economic output adjusted for price changes Nominal GDP 0 GDP measured in current prices and not adjusted for in ation 0 All GOODS and SERVICES Price Level 0 An index to measure prices of goods and services throughout an economy GDP De ator A measure if the price level that includes prices if the nal goods and services included in gross domestic product Economic Growth o Is measured as the percentage change in real per capita GDP 0 Not automatic or even typical 0 Primary topic that macroeconomists study ln a on o The growth in the overall level of prices in an economy 0 Causes GDP to go up even if there is no change in the quantity of the country s goods and services 0 We have to adjust GDP based on the effects of in ation Economic Growth o Is measured as the percent age change in real per capita GDP Recessions 0 Short term economic downturns usually last 6 to 8 months 0 Income levels fall 0 Individuals loose theirjobs and can t nd work Great Recession Lasts for about 19 months 0 In 2008 the real GDP fell by almost 9 Business Cycle 0 Short run uctuations in economic activity o On a Graph the straight lone represents the longterm trend of GDP 0 The slope of the line is the longterm growth of real GDP 0 The peaks and troughs divide the business cycle into two phases EXPANSION and CONTRACTION Economic Expansions Peaks 0 When the economy is growing faster than usual 0 Economy can also be shrinking Economic Contraction downward to trough 0 When the economy is growing at a slower rate than usual Services 0 Outputs that provide bene ts without the production of a tangible product 0 Intangible Is not stored and does not result in ownership 0 EX Eating at a restaurant Intermediate Goods Goods that rms can repackage or bundle with other goods for sale at a later stage Used in the eventual production of a final good AVOID DOUBLE COUNTING INTERMEDIATE GOODS We only count the FINAL product EX Don t count a resold used car don t count a house that has been resold Final Good 0 Good sold to nal users and customers Durable Goods use over multiple years Buying computers NonDurable Goods EX Coke a product that you can use in one sitting Gross National Product 0 An alternative measure of national output that has been used in the past Output produced by workers and resources owned by residents od the nation 0 An alternative measure of national output Bureau of Economic Analysis Categories Consumption and Investment Consumption o The purchase of nal goods and services by households with the exception of new housing Nondurable and durable EX Restaurant Meals Services Private Schools because it is being funded by the people Investment 0 Private spending on tools plant and equipment used to produce future output EX Greenhouses Buying Homes Government Spending Includes spending by all levels of government on nal goods and services NetExpo s EXPORTS minus IMPORTS of FINAL goods and services 0 Exports Strawberries grown in another country and brought into ours 0 Imports Import and Consumption EX Someone buying a coke in Honduras This doesn t re ect the productivity of that country because it wasn t produced there Quantity Price Market Value REAL GDP NOMINAL GDP PRICE LEVEL X BASE YEAR PRICE LEVEL GDP DEFLATOR NOMINAL GDP REAL GDP X100 GDP CONSUMPTION INVESTMENT GOVERNMENTEXPORTS IMPORTS GROWTH RATE CHANGE IN REAL GDP ENDINGBEGINNING BEGINNING X100 HOW TO CONVERT NOMINAL GDP TO REAL GDP REAL GDP GDP PRICE LEVEL X100 PRICE LEVEL PRICE IN YEAR X PRICE IN BASE YEAR X100


Buy Material

Are you sure you want to buy this material for

0 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Janice Dongeun University of Washington

"I used the money I made selling my notes & study guides to pay for spring break in Olympia, Washington...which was Sweet!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.