ECON 201 Lecture Notes - Lecture 1: Federal Reserve System, Government Budget Balance, Nominal Rigidity

• School: University of Maryland
• Department: Economics
• Course: ECON 201
• Professor: John Neri

Document Summary

Macro: why economy in the aggregate behaves the way it does prices tend to adjust slowly (sticky prices) Unemployment: percent of labor force that can"t find work. What is the current rate of growth on gdp? (second quarter) 1. 1 %, first quarter 0. 8% Fiscal policy- means by which a government adjusts its spending levels and taxes to monitor and influence a nation"s economy. Monetary policy: central bank influences a nation"s money supply. Federal government budget deficit: billion in 2016. Federal reserve system: central bank of the united states, regulates the us monetary and financial system (head janet l yellen) Microeconomics- examines the functioning of individual industries and the behavior of individual decision making units: firms and households. Macroeconomics- deals with the economy as a whole, focuses on the determinants of total national income, deals with aggregates such as aggregate consumption and investment, and looks at the overall level of prices instead of individual prices.