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Macro 4

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Gale Pooley
Gale Pooley

The document discusses macroeconomics and innovation. It defines key terms like ideas, inventions, and innovations. It also discusses factors that influence innovation like worldviews, cultural capital, and different types of capital. Graphs and models are presented to illustrate concepts like the capitals of innovation model, consumer and producer surplus, and how quantity supplied and demanded can create surpluses or shortages. Key economic indicators like GDP and GDP per capita are also defined.

Economy & Finance
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Lecture 4 Macroeconomics
18 million people
Revelation Reason Jerusalem Athens
Theory Statement of Causation Facts Conclusion Connecting the Facts with Logic Assumptions
Assumptions Facts Facts Assumptions Assumptions Conclusion Logic LogicLogic Logic Logic Logic Logic If ….Then…
Assumptions Facts Facts Assumptions Assumptions Conclusion Logic LogicLogic Logic Logic Logic Logic If ….Then…
Quiz 3: Sec___ Name________ 1. Draw the Capitals of Innovation Model. 2. What is the most important physical capital? 3. What is the most important human capital?
Cultural Capital Ideas IntellectualHumanPhysical Financial Inventions Entrepreneurs Innovation Human Beings Markets The Capitals of Innovation
Ideas Inventions Innovations
Where do ideas come from? Human Beings
What is an invention? The proof of an idea
What is an innovation? A market-successful invention
ideas inventions innovations 3%
Production
Innovation
Continuous Innovation
Worldview Political Legal Economic
1978 China Changed Worldview Deng XiaopingMao Zedong 1976 Dies
Consumer Surplus Producer Surplus Total Revenue = P x Q Total Surplus? Price Line
Quantity Supplied is Greater than Quantity Demanded Surplus Price Line
Price Line Quantity Demanded is Greater than Quantity Supplied Shortage
Term Definition Abbreviation Equation
GDP Gross Domestic Product The market value of all final goods and services produced in a country in a given time
GDP How much stuff a country makes
GDP per Capita GDP per Person Average GDP

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