EC 202 Study Guide - Spring 2018, Comprehensive Midterm Notes - Interest Rate, Gross Domestic Product, Recession
12 Oct 2018
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Economics: the study of choices made by individuals, businesses and government etc, due to scarcity (of time, resources, money etc). We cannot have everything we want, so we have choice between available options. Economics is not just about money; many economists study health,education,crime etc. There are two main types of economics: microeconomics and macroeconomics. Microeconomics is the study of individual units that make up the economy. Macroeconomics is the study of the economy of an entire nation or society. Measures the market value of the final goods and services produced within a country during a specific time period. Generally increase in gdp means an increase in living standards/welfare. We generally care about two features of gdp. Long term growth in gdp (long run economic growth) The main question is what accounts for the difference in gdp growth over time and across countries. Typical growth in the us is about 3% National bureau of economic research (nber) declares recessions.
