ECON282 Lecture Notes - Lecture 2: Business Cycle, Microeconomics, Fiscal Policy
10 Jan 2018
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Document Summary
Microeconomics is small scale whereas macroeconomics is big scale. Looks at a group or group of businesses. Macroeconomics: how a country is performing and why they are performing the way they are. Macroeconomist example: how many shoes sold in canada or at a country level. Economy can be split into 2 types: short run and long run. Business cycle: fluctuation in economy in short run. Any economy in the short run is fairly volatile. Long run growth comes from average worker producing more/better stuff. We start comparing countries in the long run. One of the main objectives of gov"t is to stabilize it (prevent it from over/under heating) January 10 2018 page 1 from over/under heating) Gov"t want to stabilize economy and make sure it doesn"t go into recession. Example: when a country is in recession, what to do: Countries are interconnected; they buy/sell w/ each other a lot and loan/borrow from one another.
