Aggregate demand and supply Pre-fundation Wang Wenjing

The reason why the aggregate demand curve sloping upward to the right because of the money supply is constant, lower prices, resulting in LM curve moving to the right, the market interest rates, investment levels increase, national income increases; and vice versa.
Aggregate demand curve changes on equilibrium national
income and prices
① underemployed aggregate supply curve
Changes in aggregate demand lead to changes in equilibrium of national income in the same direction, while the equilibrium price unchanged.
② Short-term aggregate supply curve
Changes in aggregate demand, leading to a balanced income and price changes are into the same direction.
③ long-term aggregate supply curve
Changes in aggregate demand lead to changes in equilibrium price in the same direction, while the balance of national income unchanged.

screencast

http://www.screencast.com/users/tottway/folders/Jing/media/9bc3ffdf-f23a-410d-8171-2b4ed6df1567

Updates to Study Direct site: Pre Foundation

Hi everyone

Here's a link to the site. You can now listen to Julian's second lecture (business law), which I want you to summarise and post HERE on this blog please.

https://studydirect.sussex.ac.uk/course/view.php?id=10934

I have also uploaded an enhanced video/podcast of my Study Skills lecture today- use it to listen again to anything you didn't understand properly.

Good luck!

Tom

HADIZA-SUMMARY LECTURE TWO

There 3ways of measuring the national income

-Measure income

-Grows

-Fluctuates.

Also there are 3 ways of measuring gross domestic products (GDP)

The product method

.Double counting-not measuring twice

.Measuring value added-not adding to another

.Gross value added(GVA)

the qualifications:

.stock-income in one way or another

.government services-add up there income-salaries

.ownership of dwelling-national income

.taxes and subsidies production-very high rate.

The income method

.add factors earning: land-profit interest rent/ labour-wages and salaries /capital-profit interest rent.

the qualifications:

.stock appreciation-what comes in

.transfer payments-

.direct taxes-taxes and subsidies on products

The expenditure method

.Y=C+G+I+X-M

.gross national income GNY

.net national income NNY.

We need to take into account some basic things

.inflation-changing prices can confuse us

.population-it matters

.purchasing power (PPP measures)

Also looking at the national statistics

suitable measures of living standards,we have non-marketed items-items excluded

the underground economy-people selling drugs and it is not recorded

externalities-pollution production-poor indicator of welfare.

the production of regrettables-nuclear weapons-maintenance

distribution of income-same size but different income-the poor and the rich.

HADIZA-MACROECONOMICS SUMMARY ONE

Macroeconomics focuses on how to measure the national income,the Scope is divided into three

Economic growth;it shows how fast it grows. Unemployment;it indicates that no enough income to go around and must people will be unemployed. Inflation;it makes life difficult.

There are major macroeconomics issues, the government policy-choosing between the macroeconomics theory. In choosing priorities the circular flow of income comes first.

THEORY----DATA

Richard stones used his work to say that some things are missing: investments-income-tax returns. also looking at the injections we have.

Investments-companies investments-railway lines

Government expenditure-peoples pension,schooling etc

Export expenditure-moved to other countries.

The companies and households are the factors

BANK-net saving-financial GOVERNMENT-net taxes-investments ABROAD-import expenditure-export expenditure.

There are relationships between injections and withdrawals

. The links between them

.Planned injections may not equal planned withdrawals.

Etc

There 3ways of measuring national income

-The product method-how much we produce:land labour and capital

-The income method-how much we earn

Expenditure method-retail shops-GNY NNY

Summaries of the economic lecture ----Cathy

The national economy measuring national income and the relationship between injections and withdrawals. Although the links between them, however,planned injections may not equal planned withdrawals.

Now, I will talk about GDP (Gross Domestic Product) ,it has three ways of meaning:
The first of all ─ The product method
● the problem of double counting● the measuring of value added
● gross value added (GVA)● some qualification
Next ─ The income method● adding factor earnings● some qualification
● stock appreciation
● transfer payments
● direct taxes,taxes and subsidies on products
Last ─ The expenditure method
● gross national income (CNY)
● Net national income (NNY)
● ─Y=C+G+I+X─M

Besides the above mentioned content, still need to pay attention to take account of inflation population and purchasing power (PPP measures) .

Finally, the ational income statistics meaning suitable measures of living standards.it is included that items are excluded (non-marked items and the underground economy) and Production (exteralities,the production of “regrettables” and distribution of income) .

The national economy measuring national income ---Eileen

GDP is the value of all final goods and services produced in the country within a given period. Three ways meaning GDP has the product method , the income method , and the expenditure mothod.The circular flow of national income and expenditure (1)production (2)incomes(3)expenditure .
The product method including three points ,the fistly,the problem of double counting .Double counting is avoided by working with value added. the secondly, the measuring of value added .only the value added to the good at stage is counted as part of GDP.the thirdly, gross value added (GVA)
As like some qualifications four factors are stocks ;governments services ;ownship of dwellings such as market rental ;taxes and subsidies on products.
The income method including adding factor earnings .but the important that income equal labour ,capital and loan .they represent the profits, interest , rent ,wages and salary.such as some qualification stock appreciation transfer payments and direct taxes, taxes and subsidies on products.
The expenditure method: -Y=C+G+I+X-M Gross national income(GNY)
Net national income (NNY) plus net income from aborad . less captical consumption depreciation ,it need to take account of inflation ,population and purchasing power (ppp measures)
The important of National income statistics meaning suitable measures of living standards.such as items are excluded are consistant non-marked items and the underground economy. Production is point that poor indicator of welfare. Exteralities the production of “regrettables”means that new nuclear weapons poor and rich main tenance the last factor distribution of income.