Chapter 19: What Macroeconomics is all about
What is macroeconomics?
the study of how the economy function if the aggregate without much attention
paid to individual markets
study concepts such as output, income, unemployment, price level, and economic
requires an understanding of both short term fluctuations (e.g.
Key macroeconomic variables
Output and income
the production of output generates income
to measure total pout in dollars, we add up the values of the many different goods
this gives NOMINAL national income
output = nati