ECON202: Intermediate Macroeconomics
Gross Domestic Product (GDP) is the main measure economists use to explain how much an economy produces at any given time. Over time, trends can be identified and patterns of growth and contraction can be seen. Inflation, or the general rise of prices, affects how GDP is measured, and economists have to account for variations in measurement tools and approaches. No one measurement system or technique is most accurate all of the time. Different schools of thought consider how to calculate and interpret GDP from their own perspectives.
Decisions are often made with incomplete knowledge under shifting economic, political, and social conditions. Determining how best to estimate and compensate for uncertainty is a complex process; macroeconomists use mathematical techniques to approximate real-world choices and outcomes. Decisions under uncertainty draw on a variety of techniques, including game theory, statistical analysis, and calculus.