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Macroeconomics Policy And Practice

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FAQ:

Q: How does macroeconomics in the news help students?

A: This chapter introduces “Macroeconomics in the News” boxes, which contain news items and data that are reported daily in the press. These boxes help explain what data are reported on regularly, how to find it, and how to read it. They encourage students to start paying more attention to the data that feature so prominently in macroeconomics.

Q: How does a macroeconomist measure gross domestic product?

A: Its significance is that macroeconomists can define and measure gross domestic product in three ways: by totaling either the value added in production or the expenditures to buy goods and services or the incomes earned by households, business firms, and government. Measuring GDP: The Production Approach 2.

Q: How is GDP a flow measure of economic activity?

A: GDP measures the value of final goods and services produced during a given time period; thus, it is a flow measure that indicates how much economic activity occurred per period of time. 4. Intermediate goods and services are used up completely in the production of final goods and services during a given time period.

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