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Unformatted text preview: because inflation is costly to society Aggregation in macroeconomics-Aggregation: the process of combining different things into a single category Modern macroeconomics began with the publication of The General Theory of Employment, Interest, and Money in 1936, originated in controversy It may seem that macroeconomists agree on very little, but there is actually broad consensus on many positive economic issues. The roots of most macroeconomic controversies are normative. Today Keynesian and classical ideas has emerged Economic growth-If output, real GDP grows faster than population, the average person can enjoy an improved standard of living High employment-When employment is low, it harms not only the unemployed themselves, but also society in general: society loses output that could have been produced Stable prices-High inflation imposes costs on society and can lower living standards...
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This note was uploaded on 03/01/2009 for the course ECON 2006 taught by Professor Rdcothren during the Spring '08 term at Virginia Tech.
- Spring '08