[ECON 102] - Midterm Exam Guide - Ultimate 46 pages long Study Guide!
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ECON 102 Full Course Notes
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Study of the allocation of scarce resources among unlimited wants. Economics comes from greek eco + nomos . Nomos - the rules, laws or customs. Study of the proper management of the home . Classical economics from 1776 through early 20th century. Supply and demand are sufficient to understand the big picture allocation of resources. Classical competition in this sense implies that unemployment, for example, cannot exist. Market clearing implies that if you want work, you will get work. Believed that the economics of chapters 2-4 were enough to perform macro analysis. Had to argue that it was efficient or that the labor market cleared over its course. Most important response: the general theory of employment, interest, and money by john maynard keynes. Keynesian economics - a theory of how potential macroeconomic productivity and actual macro productivity can get out of sync . Suggests 2 main governmental tools to align actual and potential productivity.
