ECON 102 Lecture Notes - Lecture 1: John Maynard Keynes, Marginalism, Standard-Definition Television

• School: U of M
• Department: Economics
• Course: ECON 102
• Professor: Adam Stevenson

Document Summary

The standard definition of economics: it"s the study of the allocation of scarce resources among unlimited wants. Economics comes from the greek: eco + nomos . The study of the proper management of the home . Then macroeconomics is the proper management of the home writ large the economy. From 1776 (publication of smith"s the wealth of nations) through to the early 20th century: classical economics. Classical competition in this sense implies that unemployment, for example, cannot really exist. Market clearing implies if you want work, you will get work. Believed that the economics of chapters 2-4 were sufficient to perform macro analysis. Hard to argue that it was efficient , or that the labor market cleared over its course: 25% unemployment at its peak. Most important response (in terms of the history of economic thought): the general theory of. Employment, interest, and money, by john maynard keynes.