Section 3 - Macroeconomics The Big Picture Macro vs Micro Micro Macro Focuses on individual Focuses on entire economy Difference is 300 million

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Macroeconomics: The Big Picture
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Macro vs. Micro Micro - Focuses on individual Macro - Focuses on entire economy → Difference is 300 million individuals vs. one individual → Have to aggregate all data to the macro level → Makes data collection much more complicated
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Q: How do you define P and Q on macro level? A: We have to come up with one overall measure of Price and Quantity for the entire economy P Q
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Economic Aggregates Economic measures that summarize data across different markets for goods, services, workers, and assets → Gross Domestic Product → Unemployment → Price Index → Aggregate Expenditure → Interest Rate
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Aggregate Output → Economy’s total production of final goods and services for a given time period → Called Gross Domestic Product (GDP) Example: Wheat Bread Turkey Sub Only the turkey sub gets added as it is the final good Others are considered intermediate goods
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Output Time Long-Run Growth Rate ~3.5% Business Cycle Recession Expansion
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This note was uploaded on 07/29/2009 for the course ECON 101 taught by Professor Bansak during the Spring '07 term at San Diego State.

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Section 3 - Macroeconomics The Big Picture Macro vs Micro Micro Macro Focuses on individual Focuses on entire economy Difference is 300 million

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