In which quadrants are the ycoordinates positive?
Econ 202 ~ Chapter 5 ~ Measuring A Nation’s Income The Economy’s Income and Expenditure Microeconomics is the study of how households and firms make decisions and how they interact in markets. Macroeconomics is the study of economy-wide phenomena, including inflation, unemployment and economic growth. The goal of macroeconomics is to explain the economic changes that affect many households, firms and markets simultaneously. Because every transaction has a buyer and a seller, the total expenditure in the economy must equal the total income in the economy. GDP ~ measures the total income of everyone in an economy via incomes and expenditures. It is based on accounting identities (GDP = y = c+i+g+nx ~ National Income Identity) of goods and services. GDP is the best single i