Macroeconomics Concepts Quiz

Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole.

Microeconomics studies the behavior of individual economic agents like households and firms, while macroeconomics looks at the economy as a whole.

GDP stands for Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period. It can be calculated by adding up consumption, investment, government spending, and net exports.

<p>The Phillips Curve shows the relationship between inflation and unemployment; it suggests that there is a trade-off between the two, meaning that policymakers must choose between lower inflation and lower unemployment.</p> Signup and view all the answers

<p>Fiscal policy refers to government decisions on taxing and spending to influence the economy, while monetary policy involves central bank decisions on interest rates and money supply.</p> Signup and view all the answers