ECON 204 Lecture Notes - Lecture 1: Yellow Arrow, Income Distribution
Document Summary
Microeconomics: the study of individual markets & individual economic behavior. Macroeconomics: the study of all markets taken together & aggregate economic behavior. Measurement & analysis of the national economy. Theoretical economics formal expression of economic ideas. Expressed mathematically as relationships among variables o o o. Just functions, algebra & graphs for our purposes. Empirical economics test of economic theories. Can every single point be right on the line. The points go on either side of the line but correspond to the line. Big stew with everything cooking at the same time. Cant open up a persons mind and see what they are going to do. Inability to conduct controlled experiments in social sciences. Different theoretical models, data sets & statistical models. Macroeconomics always involves questions of the role of government. These debates persist because the evidence is complicated. It"s possible & even likely to have conservative views of some issues & liberal views of other issues.
