Macroeconomics Study Notes

Study Notes

Key concepts:

Gross Domestic Product (GDP): total value of goods and services produced within a country's borders
Gross National Product (GNP): total value of goods and services produced by a country's citizens, regardless of location
Inflation rate: percentage change in general price level of goods and services
Unemployment rate: percentage of labor force unable to find work

Study of individual economic units, such as:
- Households (consumers)
- Firms (producers)
- Markets
Examines the behavior and decision-making processes of these units, including:
- Supply and demand
- Opportunity cost
- Consumer behavior and preferences
- Production and cost theory

Key concepts:

Law of Supply: as price increases, quantity supplied also increases
Law of Demand: as price decreases, quantity demanded increases
Market equilibrium: point at which supply equals demand
Elasticity: measure of responsiveness of quantity demanded or supplied to changes in price or other variables

The economy as a whole is the focus of macroeconomics, with attention on aggregate variables and issues.
Macroscopic issues include economic growth and development, inflation and deflation, employment, and international trade and finance.
Fiscal and monetary policies are also examined in macroeconomics.
Gross Domestic Product (GDP) is the total value of goods and services produced within a country's borders.
Gross National Product (GNP) is the total value of goods and services produced by a country's citizens, regardless of location.
The inflation rate is the percentage change in the general price level of goods and services.
The unemployment rate is the percentage of the labor force unable to find work.

Microeconomics focuses on individual economic units, including households (consumers), firms (producers), and markets.
The study of microeconomics examines the behavior and decision-making processes of these individual units.
Supply and demand, opportunity cost, consumer behavior, and production and cost theory are all key aspects of microeconomics.
The Law of Supply states that as price increases, quantity supplied also increases.
The Law of Demand indicates that as price decreases, quantity demanded increases.
Market equilibrium occurs when supply equals demand.
Elasticity is a measure of responsiveness to changes in price or other variables, and is used to measure the responsiveness of quantity demanded or supplied.