ECON 1BB3 Lecture : Macroeconomics Complete Course Notes.pdf

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Express ideas in economics: english language, algebra / equations, diagram / graph. Translate between each different form of communication. When the price of coffee rises, people drink less coffee. Qc (2) economics is a social science d = 100 - 2. 3pc. Science = uses scientific method, natural experiments: observe, theorize, test theory (3) microeconomics vs. macroeconomics. Micro: individual household & firms and how they interact. Macro: economy-wide phenomena such as interest rates, unemployment, money, and growth (4) efficiency vs. equity. Efficiency is the size of a pie. Equity is how the pie is divided (5) positive vs. normative analysis. Positive: the world as it is" -> collect data/evidence. Normative: the world as it should be" -> value judgement. Why are the principles 6 & 7 different in the book compared to lecture? (6) model = simplification. Map of a city (eliminates certain details to help you find your way) (7) classify variables.