ECON 203 1nd Edition Lecture 29Outline of Last Lecture I. nominal GDPII. Growth RateOutline of Current LectureI. Aggregate Demand/Supplya. Populationb. Physical capitalc. Human capitald. Level of technologyII. How much money did you spend last year?Current LectureI. Aggregate Demand/ SupplyWhat a society (country) can produce is based on the following constraints:PopulationPhysical capitalHuman capitalLevel of technologyChanges in these cause changes in what a society can produce (Q or real GDP)a. Population- more people can produce more- Immigration flow creates an increase in people able to produce- Who is added to the population matters, more productive/ less productive people affect the overall productivityb. Physical capital- anything tangible that can be added to increase productivity- Anything tangible that makes a labor unit more productive(i.e. lawn mower or scissors)c. Human capital- anything intangible that makes a labor unit more productive (i.e. knowledge) d. Level of technology- an increase in technology creates either the same output with less input or the same input with more outputThe goal in an economy is to consumeII. How much did you spend last year?These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.The general guideline states people spend everything they make. We can use the nominal GDP to be able to determine what people plan on spending within a year. Aggregate spending refers to this planned spending or desire to
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