{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter_4 - Macroeconomics Macroeconomics The study of the...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Macroeconomics Macroeconomics The study of the performance of national economies including the study of the policies  used to improve that performance Macroeconomic policies Government actions designed to affect the performance of the economy as a whole Major Macroeconomic Issues Economic growth and living standards Labor Productivity Recessions and Expansions Unemployment Inflation International Economic Interdependence Living Standards Standard of living The degree to which people have access to goods and services that make their lives  easier, healthier, safer, and more enjoyable Goods are physical objects and services are work done for people – both are valued and  produced to satisfy human wants In wealthy industrialized nations the standard of living is better than at any previous time  or place in history Typically, economic growth improves the standard of living of most people although not  everyone shares equally in the benefit Economic Growth
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
A process of steady increase in the quantity and quality of goods and services the  economy can produce In 2004 the output of the U.S. economy was nearly 33 times what is was in 1900 and  over 6 times its level in 1950 What caused this growth? Can it continue? Should it? Output of the U.S. Economy, 1900-2004 Output of the U.S. Economy, 1990-2005 Consumption Patterns Around the World Output Per Person One reason for the increased growth is the rapid growth of the U.S. population More workers are available to make more output Since more people are sharing those goods and services, the standard of living may not  be increasing Hence, output per person  is a better indicator of the average living standard over time Macroeconomic Performance Standard of living depends on Quantities of goods and services produced Number of people who share those goods and services The greater the value of production per person, the higher is the standard of living Macroeconomic Performance U.S. population: 297,536,520 (October 29, 2005) Net gain of one person every 10 seconds World population: 6,475,571,256
Image of page 2
Output per Person and per Worker in the U.S. Economy, 1900-2004 Average Labor Productivity Output per employed worker
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern