ECON 4710 Chapter : Econ4710 Ch1
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Document Summary
What is macroeconomics: study aggregate behavior of the economy, understand how the economy works, policy recommendabons, macroeconomic phenomena. Business cycle (expansions and recessions) etc : short run vs. long run. Real gross domesbc product (gdp) = the total income in the economy, adjusted for price changes. = speed of price changes. = the fracbon of the labor force that is unemployed. U. s. real gdp (billions of 2005 dollars: upward trend (long run, expansions and recessions (short run) In abon rate (gdp de ator, % per year: in abon, de abon, disin abon. Unemployment rate (% of labor force: higher unemploym ent rates during recessions. The macro economy a ects society"s well- being. (e. g. , high correlabon between unemployment rate and property crime rate) The macro economy a ects your well- being. (e. g. , your wage, job availability) The macro economy a ects polibcs. (e. g. , the state of economy has a huge impact on elecbon outcomes)