ECON 2 Lecture Notes - Lecture 1: Money Supply, Money Illusion
27 Aug 2020
School
Department
Course
Professor
Document Summary
A box of tools with which an economist constructs economic models that facilitate the study of the real world. These refer to simplified explanations of how the economy works. This is the branch of economics that attempts to analyze and explain the interrelationships between aggregate (totals) variables such as output, employment, interest rates, money and prices in the economy. These are the key variables that determine economic activities and level of national income in an economy. Macroeconomics therefore analyses the performance of the economy as a whole. Why is it that gnp grows at a lower rate in some years than in others? (ii) What determines levels of unemployment? (iii) general price level. Shows cost of purchasing by a typical consumer. Estimates inflation and anticipated effects (iv) balance of payment problem (v) These are simplified explanations or theories of how the economy works, i. e. simplified explanations of the real word.
