ECON 202 Test 1 Study - Econ 202 Exam 1 Study Guide Chapter...

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Econ 202 Exam 1 Study Guide Chapter 4: Macroeconomics Macroeconomics : the study of the performance of national economies and the policies governments use to try to improve that performance. Macroeconomic policies : Gov. actions designed to affect the performance of the economy as a whole. Standard of Living : the degree to which people have access to goods and services. Average labor productivity: output per employed worker Output per person=total output/ population of economy Avg labor productivity= output/employed workers Recessions: slowdowns in the economy Expansions: rapid economic growth Types of Macroeconomic policy: Monetary policy- determination of the nation’s money supply. Controlled by a central bank Fiscal policy- decisions that determine the govs budget, including the amount and composition of government expenditures and gov revenues. Structural policy- gov policies aimed at changing the underlying structure, or institutions, or the nations economy Positive Analysis : addresses the economic consequences of a particular event or policy, not whether those consequences are desirable. Normative analysis: addresses the question of whether a policy should be used: normative analysis inevitably involves the values of the person doing the analysis. Aggregation:
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This note was uploaded on 03/30/2008 for the course ECON 202 taught by Professor Amsler during the Spring '08 term at Michigan State University.

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ECON 202 Test 1 Study - Econ 202 Exam 1 Study Guide Chapter...

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