important goal in this text is to consistently build up macroeconomic analysis

Important goal in this text is to consistently build

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important goal in this text is to consistently build up macroeconomic analysis from microeconomic principles. There is some effort required in taking this type of approach, but the effort is well worth it. The result is that you will understand better how the economy works and how to improve it. Gross Domestic Product, Economic Growth and Business Cycles GDP can be seen as the quantity of final goods and services produced (or consumed or income earned) within a country's borders over a particular period of time. GDP also represents the quantity of income earned by those contributing to domestic output. The time series of GDP can be separated into trend and business cycle (and cyclical) components.
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There are five fundamental economic questions: 1. Fundamental macroeconomic questions 2. What causes sustained economic growth? 3. Is there some limit to economics growth? 4. What can governments do? 5. What causes business cycles? In analysing data to study economic growth and business cycles, it often proves useful to transform data in various ways, so as to obtain sharper insights. For economic time series that exhibit growth, such as per capita real GDP. A useful transformation is to take the natural logarithm of the time series. A second useful transformation to carry out on an economic time series is to separate the series into two components: the growth or the trend component, and the business cycle component.
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