Chapter1 - Chapter 1 Learning Objectives This chapter...

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CHAPTER 1 The Science of Macroeconomi Chapter 1: Learning Objectives This chapter introduces you to the issues macroeconomists study the tools macroeconomists use some important concepts in macroeconomic analysis
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CHAPTER 1 The Science of Macroeconomi Important issues in macroeconomics Why does the cost of living keep rising? Why are millions of people unemployed, even when the economy is booming? What causes recessions? Can the government do anything to combat recessions? Should it? Macroeconomics , the study of the economy as a whole, addresses many topical issues:
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CHAPTER 1 The Science of Macroeconomi Important issues in macroeconomics What is the government budget deficit? How does it affect the economy? Why does the U.S. have such a huge trade deficit? Why are so many countries poor? What policies might help them grow out of poverty? Macroeconomics , the study of the economy as a whole, addresses many topical issues:
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CHAPTER 1 The Science of Macroeconomi U.S. Real GDP per capita (2000 dollars) 0 10,000 20,000 30,000 40,000 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Great Depression World War II First oil price shock Second oil price shock 9/11/2001 long-run upward trend…
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CHAPTER 1 The Science of Macroeconomi U.S. inflation rate (% per year) -15 -10 -5 0 5 10 15 20 25 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
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CHAPTER 1 The Science of Macroeconomi U.S. unemployment rate (% of labor force) 0 5 10 15 20 25 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
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CHAPTER 1 The Science of Macroeconomi Social problems like homelessness, poverty are linked to the economy. Social problems like homelessness, poverty are linked to the economy. Why learn macroeconomics? 1. The macroeconomy affects society’s well-being. 0 2 4 6 8 10 1970 1980 1990 2000 2000 3000 4000 5000 6000 percent of labor force c r i m e s p e r 1 0 0 , 0 0 0 p o p u l a t i o n U.S. Unemployment and Property Crime Rates unemployment (left scale) property crime (right scale)
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Macroeconomi Why learn macroeconomics? 2. The macroeconomy affects your well-being.
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