EC290 Lecture Notes - Lecture 2: Normative Economics, Macroeconomics, Business Cycle
Document Summary
A positive analysis examines the economic consequence of an economic policy, but it does not address its desirability. A normative analysis tried to determine whether a certain economic policy should be used. Economists can disagree on normative issues because of difference in values. Economist disagree on positive issues because of different schools of thought (e. g. classical vs. Individuals, firms, and the governemnt interact in goods, assets and labor markets. Components or extensions of the basic model will be used to study issues such as economic growth, business cycles, inflation, and policy. There are many limitations in this approach, but it provides a starting point for us to understand macroeconomics. Slides 2: the measurement and structure of the canadian economy. The national income accounts are an accounting framework used in measuring current economic activity. There are 3 approaches to calculate the amount of economic activity.
