Objectives Section 3

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					Objectives Section 3.1-3.3

3.1: Measuring national income
     Circular flow of income




      Methods of measurement
          o Income


           o Expenditure


           o Output


      Distinction between:
          o gross and net

           o national and domestic

           o nominal and real

           o total and per capita

3.2: Introduction to development
     economic growth and economic development
           o (differences in definitions of the two concepts)


      GDP vs. GNP as measures of growth


      Limitations of GDP as a measure of to compare welfare between countries


      Allowance for differences in purchasing power when comparing welfare between
       countries


      Alternative methods of measurement


      Problems of measuring development
3.3: Macroeconomic Models
 Aggregate demand- components


   Aggregate supply
       o Short-run


       o Long-run (Keynesian versus neo-classical approach)




   Full-employment level of national income



   Equilibrium level of national income




   Inflationary gap




   Deflationary gap




   Diagram illustrating trade/business cycle

				
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posted:10/1/2012
language:English
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