ECON 1050- Final Exam Guide - Comprehensive Notes for the exam ( 76 pages long!)
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Microeconomics is the study of how households and firms make choices, how they interact in markets and how the government attempts to influence their choices. Study individual markets, such as the market for personal computers. Macroeconomics is the study of the economy as a whole, including topics such as inflation, unemployment and economic growth. Study factors that affect many markets at the same time. Macroeconomics analysis: deter(cid:373)i(cid:374)es a (cid:272)ou(cid:374)tr(cid:455)"s rate of e(cid:272)o(cid:374)o(cid:373)i(cid:272) gro(cid:449)th the reason growth rates differ so greatly between countries, determines the total level of employment and unemployment rate. E(cid:454)pa(cid:374)sio(cid:374) of so(cid:272)iet(cid:455)"s produ(cid:272)ti(cid:448)e pote(cid:374)tial, usuall(cid:455) (cid:373)easured (cid:271)(cid:455) the rate of gro(cid:449)th i(cid:374) real gdp ability of economy to produce increasing quantities of goods and services important because economies who grow slowly, fail to raise living standard. Business cycle affects the employment and unemployment rate. Alternating period of economic expansion and economic contraction relative to the trend rate of economic growth.