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Chapter 7:Macro & National Income - Coggle Diagram
Chapter 7:Macro & National Income
Definition Of Macro: The behavior of economic system as a whole
Examples: Changes in unemployment, inflation rate, general price level & national income etc.
Macro Policies:
Financial Policy
Subsidies and Price Control
Monetary Policy
Goals of Macro:
Economic Efficiency
Price Level Stability
Full Employment
Equitable Distribution Of Income
Economic Growth
Types Of GDP
Real GDP is the valuation of a nation’s total output in base year prices.
The GDP deflator is a measure of the price level calculated or the ratio of nominal GDP to real GDP times 100.
Nominal GDP is the valuation of a nation’s total output at current market prices
Gross National Product (GNP) is the total income earned by a nation’s permanent resident ( national)
GDP is defined as the total value of all final goods and services produced by the domestic economy in one year
Purpose of Calculating:
Compares the wealth of different countries
Measures the improvement in national wealth and the standard of living
Measures the standard of living in a country
Assist central government in its economic planning