ECON 202 Lecture 1: Chapter 1
18 May 2016
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Document Summary
Macroeconomics is the study of the performance, structure, behaviour, and decision-making of an economy as a whole. Real gdp grows over time, and is about five times its level in 1900. Although real gdp rises in most years, the growth is not steady as there are repeated periods during which real gdp falls: recession mild dips in real gdp, depression severe dips in real gdp. Inflation varies substantially, the first half of the twentieth century saw periods of falling prices called. In the past half century, inflation has been the norm, becoming more severe during the late 1970s and steadier at 2 or 3 percent per year in recent years. There is always unemployment in the economy and always varies from year to year, with recessions and depressions commonly associated with high unemployment. Economists use models to help explain economic variables and the relationships among them.
