ECON 102 Lecture 2: 19-What Macroeconomics Is All About
64
ECON 102 Full Course Notes
Verified Note
64 documents
Document Summary
In 2007, housing prices in the us fell sharply: banks who had invested heavily in mortgage-backed securities were in trouble (some of them went bankrupt) The world economy entered into a deep recession. Macroeconomics = study of the behavior and performance of the economy as a whole. Concerned with the behavior of economic aggregates and averages such as total output, total investment, total exports and the price level and with how they may be influenced by government policy. When aggregate output rises, the output of many commodities and the incomes of many people rise with it. When the unemployment rate rises, many workers suffer reductions in their incomes. When significant disruptions occur in the credit markets, interest rates rise and borrowers find it more difficult to finance their desired purchases. The production of output or national product (goods and services) generates income. This yields a dollar value of production for each good.
