econ202 - Lecture Note- Chapter 1 The Science of...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style 11/26/10 Lecture Note- Chapter 1 The Science of Macroeconomics Econ 202- Macroeconomic Theory 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
11/26/10 Learning Objectives This chapter introduces you to the issues macroeconomists study. the tools macroeconomists use. some important concepts in macroeconomic analysis. study some historical facts about US and Canadian economy.
Background image of page 2
11/26/10 Introduction Chapter 1 provides a brief introduction to macroeconomics. Macroeconomics is the study of overall or aggregate performance of an economy. We study the determination of the economy’s total production of goods and services as measured by real GDP.
Background image of page 3

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

View Full DocumentRight Arrow Icon
11/26/10 Introduction We also examine the aggregates of employment and unemployment. These terms refer to quantities of goods or labour. We study the prices associated with these quantities: the general price level, the wage rate, the rental price and the interest rate.
Background image of page 4
11/26/10 Introduction We set up economic models which allow us to study how the various quantities and prices are determined. The key variables in macroeconomics are real GDP (Gross Domestic Product), inflation and the unemployment rate. We will look into the definitions of each of these variables and how they are
Background image of page 5

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

View Full DocumentRight Arrow Icon
11/26/10 Important issues in macroeconomics One good way to get a sense of macroeconomics is to consider the questions it deals with, some of the important in all of economics.
Background image of page 6
11/26/10 Important issues in macroeconomics What determines a nation’s long run economic growth? Why are so many Macroeconomics addresses many topical issues:
Background image of page 7

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

View Full DocumentRight Arrow Icon
11/26/10 Important issues in macroeconomics Why are millions of people unemployed, when the economy is in a recession? Why determines the rate of inflation- that is, what determines how rapidly prices are rising in an economy? What was inflation so high in much of the 1970s and why has it fallen so dramatically in many of the richest Macroeconomics addresses many topical issues:
Background image of page 8
11/26/10 Important issues in macroeconomics Budget deficit occurs when the government borrows money to finance its spending. Trade deficits results when one economy borrows from another. Why would an economy run a high budget deficit or high trade deficit or both? How does it affect the economy? Macroeconomics addresses many topical issues:
Background image of page 9

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

View Full DocumentRight Arrow Icon
11/26/10 Important issues in macroeconomics What prompted the currency crises in Mexico in the mid-1990s and in many Asian countries at the end of the 1990s? What roles do financial markets like
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 45

econ202 - Lecture Note- Chapter 1 The Science of...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online