ECON102: Principles of Macroeconomics

Upon successful completion of this unit, you will be able to:

• define nominal gross domestic product and real gross domestic product;
  
• compare and contrast as well as discuss various measures of output and income;
  
• distinguish between real and nominal values;
  
• analyze the problems associated with using GDP as a measure of well-being;
  
• identify the components of the expenditure and the income approaches to the measurement of GDP;
  
• explain how consumer income relates to spending and saving;
  
• describe the consumption and savings functions and the terms attached to their slopes;
  
• define automatic stabilizers, and explain changes in government spending and taxing during a macroeconomic recession and expansion;
  
• describe how savings and investment contribute to economic growth; and
  
• define economic growth in terms of changes in the production possibilities curve and in real gross domestic product.