BU121 Lecture 19: EC140 Chapter 19 Notes
Document Summary
Macroeconomics: the study of how the economy behaves in broad outline (not focused on individuals" market spending habits) Concerned with economic aggregates and averages (total output, total investment, total exports, and the price level) and how they may be inluenced by government policy. Investment = the producion of goods not for immediate consumpion not savings. Savings is money put away and used in the future. When aggregate output rises, the output of many commodiies and and the incomes of many people will rise. Disrupions in the credit market= higher interest rates and diiculty borrowing macro econ considers the short run behaviours such as output, employment, government policy, and inlaion. This is the study of economic growth and is concerned with explaining how investment and technological change afect our material living standards. Need to understand short run luctuaions and long run econ growth.