Economics 2152A/B Chapter Notes - Chapter 1: Real Business-Cycle Theory, Gross Domestic Product, Microfoundations
Document Summary
Macroeconomics is the study of the behaviour of large collections of economic agents. Deals with the overall effects on economies of the choices that all economic agents make. *microeconomics deals with the choices of individual consumers or firms. The overall level of economic activity in individual countries. Long-run growth: refers to the increase in a nation"s productive capacity and average standard of living that occurs over a long period of time. Business cycles: the short-run ups and downs, or booms and recessions, in aggregate economic activity. Gross domestic product (gdp): the quantity of goods and services produced within a country"s borders during some specified period of time. Represents the aggregate quantity of income earned by those who contribute to production in a country. Economics: a scientific pursuit involving the formulation and refinement of theories that can help us better understand how economies work and how they can be improved.