4 - detailed macro intro

4 - detailed macro intro - Chapter 4: Macroeconomics:...

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1 Chapter 4: Macroeconomics: Detailed Introduction and Issues 1. Economic Growth a. Definition- an economy that is growing is producing more goods and services. (More stuff, producing more jobs.) b. Measure- % change in real GDP i) Real GDP (Gross Domestic Product)- the opposite of normal . Measures the change over time . c. Major Issue: Fluctuations over time i) Long Run: Changes in Productivity (over decades or even centuries- long run) Increased output per worker per hour. ii) Short Run: Business Cycle- short run fluctuations in Economic Growth The economy does not really grow in the short run consistently (over days and months ). It may be fast or slow. Types of Short-Term Fluctuations (a) Recession - economy is growing negatively for at least two consecutive quarters (b) Depression - very prolonged severe depression (c) Expansion - period of time where the economy is steadily growing Movements in the business cycle are related to other things in the economy: (a) Example: Productivity , which is procyclical ( moves with the business cycle ) 28
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2. Unemployment
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This note was uploaded on 04/15/2008 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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4 - detailed macro intro - Chapter 4: Macroeconomics:...

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