Econ chapter 4 notes and terms gdp: measuing total. Macroeconomics: the study of the economy as a whole: includes inflation, unemployment, and economic growth. Macroeconomic analysis includes studying factors that affect many markets at the same time. Business cycle: refers to alternating periods of expansion (total production/employment is increasing) and recession (total production/employment is decreasing) that the canadian economy has experienced since canada became a country. Economic growth: refers to the ability of an economy to produce increasing quantities of goods and services. Analysis: what determines a country"s rate of growth and why growth rates differ, as well as what determines total employment level in an economy. Level of employment is significantly effected in the short run, but not the long run. Inflation rate: percentage increase in the average level of prices from one year to the next. Final good or service: one that is purchased by its final user and isn"t included in the production of any other goods.