Summary of Ch6 1. Macroeconomics is the study of the behavior of the economy as a whole,which can be different from the sum of its parts. Macroeconomics differs from microeconomics in the type of questions it tries to answer. Macroeconomics also has a strong policy focus: Keynesian economics , which emerged during the Great Depression, advocates the use of monetary policy and fiscal policy to fight economic slumps. Prior to the Great Depression, the economy was thought to be self-regulating . 2. One key concern of macroeconomics is the business cycle , the short-run alternation between recessions , periods of falling employment and output,and expansions , periods of rising employment and output. The point at which expansion turns to recession is a business-cycle peak . The point at which recession turns to expansion is a business-cycle trough . 3. Another key area of macroeconomic study is
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This note was uploaded on 09/20/2011 for the course ECO 2023 taught by Professor Sabet during the Fall '08 term at FIU.