ECON 1020 Chapter Notes - Chapter 20: Monetary Policy, Fiscal Policy, Corporate Bond
10 Oct 2016
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Cfo ch 20: introduction to macroeconomics pg 409-415. Microeconomics- examines the functioning of individual industries and behavior of individual decision making units, firms, and households. Macroeconomics focuses on the determinants of total national income, deals with aggregates such as aggregate consumption and investment, and looks at the overall level of prices instead of individual prices. Aggregate behavior- the behavior of all households and firms together. Sticky prices- prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded. Important prices such as wage rate often seem sticky: macroeconomic concerns. Business cycle- the cycle of short term ups and downs of the economy. Aggregate output- total quantity of goods and services produced in an economy in a given period. The main measure of how an economy is doing. Conventionally, a period in which aggregate output declines for two consecutive quarters.
