CH 6 Summary

CH 6 Summary - S ummary of Ch6 1.,whichcanbedifferent ....

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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.

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