Introduction to Macroeconomics

The study of collections of people and firms and how their interactions through markets determine the overall economic activity in a country or region.

Macroeconomics studies overall economic activity, while microeconomics focuses on individual people, firms, or markets.

Cosmologists studying black holes drawing on concepts of general relativity and quantum mechanics.

<p>Why is the typical American today more than 10 times richer than the typical American a century ago?</p> Signup and view all the answers

<p>GDP stands for gross domestic product, an overall measure of income that reflects the economic activity within a country or region.</p> Signup and view all the answers

<p>Various factors such as money supply, demand for goods and services, and production costs determine the rate of inflation in an economy.</p> Signup and view all the answers

<p>Countries may experience hyperinflation when there is excessive money supply, leading to a rapid and extreme increase in prices.</p> Signup and view all the answers

<p>In the 1970s, high inflation was caused by factors like oil price shocks and wage-price spirals. In the 1980s, inflation fell due to policies like central bank independence and tighter monetary control.</p> Signup and view all the answers

<p>Economic recessions and booms are usually caused by fluctuations in aggregate demand, investment, consumer spending, and external shocks like financial crises or natural disasters.</p> Signup and view all the answers

<p>Factors contributing to higher unemployment rates in Europe include labor market regulations, generous welfare systems, and lower labor mobility compared to the United States.</p> Signup and view all the answers