ECON 102 Lecture Notes - Lecture 1: Final Good, Macroeconomics
Document Summary
The study of the structure and performance of national economies and of the policies that governments use to try to affect economic performance. Macroeconomists ignore distinctions between individual product markets and focus on national totals. The process of summing individual economic variables to obtain economy wide totals is called aggregation. To maintain markets" equilibrium - the quantities demanded and supplied are equal. What does the next or additional step mean for you. General welfare will be maximized if there are free markets and individuals act in their own best interest. Government should have a limited role in the economy. Assumes wages and prices adjust slowly and so markets can be out of equilibrium for long periods of time. Governments must intervene to alleviate problems such as unemployment. Measures the value of final goods and services produced within the borders of a given country during a given time period, typically a year.
