ECON 1102 Chapter Notes - Chapter Ch2: Output Gap, Nominal Interest Rate, Real Interest Rate
1 Feb 2018
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Econ 1102 lecture 2 notes- what macroeconomics is all about. Macroeconomics focuses on the performance of the economy as a whole. Particularly concerned with long-run growth and short-run fluctuations (business cycles). 1776: start of the science of economics with a. smith, the wealth of nations. 1936: birth of macroeconomics with j. m. keynes, the general theory of employment, interest, and prices. Understanding why economies experience episodes such as great depression and why employment and production grow and fluctuate over time. Classical (or neoclassical) economics and keynesian economics: economic growth and living standards (long term goal, standard of living: access to the goods and services that make people"s lives easier, healthier, safe and more enjoyable. The (cid:373)ost (cid:272)o(cid:373)p(cid:396)ehe(cid:374)si(cid:448)e (cid:373)easu(cid:396)e of a (cid:374)atio(cid:374)(cid:859)s o(cid:448)e(cid:396)all le(cid:448)el of e(cid:272)o(cid:374)o(cid:373)i(cid:272) a(cid:272)ti(cid:448)it(cid:455) is the value of its total production of goods and services, called national product, or sometime also called national output.
