Professor Lowenberg Office: JH 4238 Phone: [phone] [e-mail] http://www.csun.edu/~vcecn00h/

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Professor LowenbergOffice JH
4238Phone [phone]anton.lowenberg_at_csun.e
duhttp//www.csun.edu/vcecn00h/
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What is macroeconomics about?
1. Aggregate economic performance Standard of
living How much wealth do we produce?
Real GDP (measures output and income)EmploymentG
rowth of per capita real GDP
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2. Price level Cost of living Price indexes,
e.g., CPI Inflation, deflation
3. Interest rates and exchange rates
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Chapter 2What do we produce?
1. Consumption goods Expenditures by a household
2. Capital goods Durable goods that increase
firms future output Expenditure on these goods
is investment
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3. Government goods and servicesPurchases by all
levels of government
4. ExportsExpenditures by foreigners on domestic
goods
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How do we produce?
Output is produced by employing productive
resources called factors of production.
The suppliers of the factors of production are
paid factor income.
There are four factors of production and
corresponding to each is a factor payment
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Labor Wages
Capital Interest
Land Rent
Entrepreneurship Profit
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The circular flow model of the macroeconomy
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