Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 1: Intro to Macro (Components in Macro (Households, Firms,…
Chapter 1: Intro to Macro
Definition
Deals with economy as a whole.
3 major concern in Macro
Unemployment
Unemployment rate
Inflation and Deflation
hyperfinflation
Output growth
Aggregate Output
Business Cycle
Cycle of short-term ups and downs of an economy
Components in Macro
Households
Firms
Government
Rest of the world
Circular flow diagram
Transfer payments
Veteran's benefits
Welfare payments
Pension funds
3 Market Arenas
Money market
Labour market
Goods & Service market
Role of government
Fiscal policy
Monetary policy
Brief History
Fine tuning
Government's role in regulating inflation & unemployment
Stagflation
High inflation & high unemployment
Great Depression
Severe economic contraction & high employment
