Chapter 23

Chapter 23 is a macroeconomics chapter. Macroeconomics talks about the economy as a whole and not just one specific firm, market or household. Before we have only seen how specific firms have made their decisions, but  now we will see economic changes that affect all the firms, households, and markets together. This chapter introduces GDP which stands for gross domestic product. GDP is the total income or expenditure of the entire nation. It can be either income or expenditure because in any situation where there money changes places there is a buyer and a seller. So the income of the buyer is the same as the expenditure of the seller. GDP is used to judge the welfare of the economy since it shows the standard of living for people in a way. The higher the GDP the more money there is, so the higher the standard of living. I give this chapter a 1 out of 3. This chapter only introduced one aspect of economics, GDP, and explained it well so it was not too hard to understand.