This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: about how people will behave or react to change in economic circumstances. Empirical analysis: The use of data to test a hypothesis. Ceteris paribus (Latin phrase): Letting everything else be equal or holding everything else constant. Microeconomics: The study of household and firm behavior and how they interact in the marketplace. Macroeconomics: The study of the whole economy, including the topics of inflation. Unemployment, and economic growth. Aggregate: The total amount-such as the aggregate level of output. 1.4 Correlation: when two things occur together. Causation: when one event brings about another event. The fallacy of composition: The incorrect view that what is true for the individual is always true for the group. 1.5 Positive analysis: an objective, testable statement that describe what happens and why it happens. Normative analysis: a subjective, contestable statement that attempts to describe what should be done....
View Full Document
- Spring '09