Transcript ECON 161 Professor Lowenberg Office: JH 4238 Phone: 818

Professor Lowenberg
Office: JH 4238
Phone: 818-677-4516
[email protected]
http://www.csun.edu/~vcecn00h/
What is macroeconomics about?
1. Aggregate economic performance
Standard of living: How much wealth do
we produce?
Real GDP (measures output and income)
Employment
Growth of per capita real GDP
2. Price level
Cost of living
Price indexes, e.g., CPI
Inflation, deflation
3. Interest rates and exchange rates
Chapter 2
What do we produce?
1. Consumption goods
Expenditures by a household
2. Capital goods
Durable goods that increase firms’ future output
Expenditure on these goods is “investment”
3. Government goods and services
Purchases by all levels of government
4. Exports
Expenditures by foreigners on domestic goods
How do we produce?
Output is produced by employing productive
resources called factors of production.
The suppliers of the factors of production
are paid factor income.
There are four factors of production and
corresponding to each is a factor payment:
Labor … Wages
Capital … Interest
Land … Rent
Entrepreneurship … Profit
The circular flow model of the
macroeconomy