ECON 203 Lecture Notes - Lecture 1: Gross Domestic Product, Business Cycle, Macroeconomics
13 Jul 2015
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Econ 203: principles of macroeconomics - lecture 1: gross domestic product pt. Microeconomics: the study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their decisions. Macroeconomics is the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth. When studying the overall economy-level actions of people and governments, we utilize the models and tools of macroeconomics. Business cycle: alternating periods between economic expansion and economic recession. Expansion: the period of a business cycle during which the total production and total employment are increasing. Recession: the period of a business cycle during which the total production and total employment are decreasing. Economic growth: the ability of an economy to produce increasing quantities of goods and services. Inflation rate: the percentage increase in price level from one year to the next. Gross domestic product (gdp): a measure of total production.
