ECO 304L Chapter Notes - Chapter Unit 2: Ch 5-8,13: Video Game Industry, Nachos, Macroeconomics

• School: UT-Austin
• Department: Economics
• Course: ECO 304L
• Professor: M O S T A S H A R I, S H A L A H

Document Summary

For example, the microeconomics of the global auto industry or petroleum markets involve far more money than the macroeconomics of. The key aspect of macroeconomics is aggregation, macro analysis aggregates, or adds up, all the production in a particular geographic region: it would make sense to talk about the macroeconomics of a region smaller than a country. Sometimes people discuss the aggregate economies of states, or even cities. That said, the vast majority of macro analysis is done for national economies: aggregate production versus composition (or allocation) of production, micro focuses the composition of output, such as whether nachos or roller blades are produced. It deals with how resources are allocated across different markets: macro does not analyze specific kinds of goods and services produced, but emphasizes how much total output is produced in a country. The concept of total output requires some way to aggregate across diverse goods and services.