Lecture #1 - 1 1-1 Introduction to Macroeconomics 1-2...

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Unformatted text preview: 1 1-1 Introduction to Macroeconomics 1-2 Agenda What Macroeconomics Is About. What Macroeconomists Do. Why Macroeconomists Disagree. 1-3 What Macroeconomics Is About Macroeconomics is the study of: 1. The structure, dynamic adjustment, and performance of national economies, and 2. The government policies that affect national economic performance. 1-4 What Macroeconomics Is About The main issues of macroeconomics are: Long-run economic growth Business cycles/fluctuations Unemployment Inflation The international economy Macroeconomic policy 2 1-5 What Macroeconomics Is About Long-run economic growth: Figure 1.1: Output of the U.S. economy. 1-6 Figure 1.1 Output of the U.S. economy. 1-7 What Macroeconomics Is About Long-run Economic Growth: Two main sources of growth. Population growth. Increases in average labor productivity. Figure 1.2: Average labor productivity in the U.S. Average labor productivity is output per unit of labor. 1-8 Figure 1.2 Average labor productivity. 3 1-9 What Macroeconomics Is About Average labor productivity growth: About 2.5% per year from 1949 to 1973. About 1.1% per year from 1973 to 1995. About 2.0% per year from 1995 to 2005. 1-10 What Macroeconomics Is About Business cycles or fluctuations: Business cycles are the short-run contractions and expansions in economic activity. 1-13 What Macroeconomics Is About Unemployment: Unemployment is the number of people who are available for work and actively seeking work but cannot find jobs....
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Lecture #1 - 1 1-1 Introduction to Macroeconomics 1-2...

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