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Showing posts from January, 2015

ECON 3b GROSS DOMESTIC PRODUCT

I reserve the right to be wrong.



Microeconomics is the study of markets and their participants, and macroeconomics is the study of whole economies. This means we need tools to analyse what is going on at a national level. The most widely accepted areas of macroeconomics are the study of money, of business cycles and of national economic performance using the metric called gross domestic product or GDP.

When we want to measure the size of an economy we empirically measure the value of a subset of transactions in every industry ( with the industry definitions being agreed between those doing the measuring beforehand ) then add 'em all up!



GROSS DOMESTIC PRODUCT / Y

We divide transactions into five distinct types; consumption, investment, government spending, exports and imports. The totals of these categories are tallied separately. Finally, the gross domestic product of an economy is equal to total Investment + total Consumption + total Government spending + total Exports minus Imp…

Matthew John Hayden

I have moved. I have started a weblog at another location. I hope what readers I have gained will pursue me to that halcyon shore. On this blog I will resume posts, but they will be pretty banal, with the exception of 'Commentaryism' posts where I share comment wars I've gotten into in various places. I've made three posts of this ilk on my other site, and they do jar with what I'm doing there, so from now on my comment wars posts go here!

In other news, I'm a far better scholar than I was the last time I posted here, I have published a few defences of the Austrian school, and begun an exposition of the methods and claims of Austrians, namely praxeology and thymology. I look forward to seeing all three of you there!

So, come and find me!