[ECO1302] - Midterm Exam Guide - Ultimate 36 pages long Study Guide!

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The purpose of studying economics is not to acquire a set of ready made answers to economic questions but to avoid being deceived by economists joan robinson. Deals with questions related to individual agents consumers, firms, governments or industries. Macroeconomists are interested in the economic system as a whole, while microeconomists are mainly concerned with the study of individual markets or agents in isolation. Macroeconomists deal with aggregates: the production of the whoel national economy, the level of unemployment in the nations or province, overall exports to an imports from foreign nations, the overall rate of inflation. Macroeconomics also deals with government policies that affect the entire economy: monetary policy (interest rates/money supply), fiscal policy (taxation/government spending) and exchange rates. Real world complexity simplification in economic theory. The (cid:862)a(cid:396)t(cid:863) of e(cid:272)o(cid:374)o(cid:373)i(cid:272)s: fo(cid:272)us o(cid:374) the esse(cid:374)tial; ig(cid:374)o(cid:396)e the t(cid:396)i(cid:448)ial. Economic theory = explanation of why economic events occur.