chap 20

chap 20 - Macro: study of economy as a whole Micro: study...

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Macro: study of economy as a whole Micro: study of individual prices, quantities, and markets Business cycle : short-term fluctuations of output, employment, and prices Economic growth : longer-term trends in output and living standards I. Key Concepts of Macroeconomics A. The Birth of Macroeconomics 1. founded by John Maynard Keynes from studying econ after WWII The General Theory of Employment, Interest, and Money 2. Employment Act of 1946 – federal responsibility of macro a. promote output growth, foster employment, maintain price stability b. Why do output and employment sometimes fall, and how can unemployment be reduced? c. What are the sources of price inflation and how can it be kept under control? d. How can a nation increase its rate of economics growth? B. Objectives and Instruments of Macroeconomics 1. Measuring Economic Success a. Total output = gross domestic product ( GDP ) i. Market value of all final goods/services ii. Nominal – actual market price iii. Real – calculated in constant/invariant prices
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This note was uploaded on 04/13/2008 for the course ECON 132 taught by Professor Rado during the Spring '08 term at BC.

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chap 20 - Macro: study of economy as a whole Micro: study...

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