ECO 1104 Lecture Notes - Lecture 1: Money Supply, Negative Income Tax, Business Cycle

• School: University of Ottawa
• Department: Economics
• Course: ECO 1104
• Professor: Gordon Lenjosek

Document Summary

Experiments are often difficult in economics: the role of assumptions. Assumptions can simplify the complex world and make it easier to understand. The art in scientific thinking is deciding which assumptions to make: economic models: Economists also use models to learn about the world that are most often composed of diagrms and equations. Economic models omit many details to allow us to see what is truly important. Microeconomics and macroeconomics: microeconomics: the study of how households and firms make decisions and how they interact in markets, macroeconmics: the study of economy-wide phenomena, including inflation, unemployment, and economic growth. Economists at finance canada help design tax policy. Economists at industry canada help design and enforce canada"s competition laws. Economists at global affairs canada help negotiate trade agreements with other countries. Economists at employment and social development canada analyze data on workers and on those looking for work to help formulate labour-market policies economists at environment canada help design environmental regulations.