Macroeconomics Unit 1 Introduction

The word ______ comes from the Greek word oikonomos, which means 'one who manages a household'.

The management of society's resources is important because resources are ______.

[Blank] is the study of how society manages its scarce resources.

In most societies, resources are allocated not by an all-powerful dictator but through the combined actions of millions of ______ and firms.

A household must allocate its ______ resources among its various members.

Economists study how people make decisions: how much they ______, what they buy, how much they save, and how they invest their savings.

Like a ______, a society faces many decisions.

Each individual in a society cannot attain the highest standard of living to which he or she might ______.

Macroeconomic performance relies on measures of economic activity, focusing on variables and data at the national level within a specific ______ of time.

One of the major objectives of macroeconomics is to achieve ______ employment.

To economists, ______ employment means that unemployment has fallen to the lowest possible level that won't cause inflation.

Price ______ stability denotes that consumer spending is not affected by inflation because consumers do not worry that the value of money will change anytime soon.

Macroeconomics entails analyses of aggregate measures such as national income, national output, ______ rates, and business cycle fluctuations.

According to Classical economists, ______ employment is a situation where there is no involuntary unemployment.

The balance of ______ is one of the major objectives of macroeconomics.

Macroeconomic performance relies on measures of economic activity, focusing on variables and data at the national level within a specific period of ______.

The study of macroeconomics focuses on how a country's economy works while trying to discern among good, better, and best choices for improving and/or maintaining a nation's standard of living and level of economic and _______________ well-being.

Macroeconomics focuses on changes in the _______________ level across all markets.

A study of macroeconomics situates itself around a number of goals including economic growth, _______________, and full employment.

Macroeconomics examines forces and trends that affect the economy as a whole, including the growth in average income, the fraction of the population that cannot find work, and the rate at which prices are _______________.

One goal of macroeconomics is to achieve _______________ employment.

Historical and contemporary perspectives on the roles and policies of government are part of the mix of interpretations and alternatives that surround questions of who or what gains and loses the most or least within a relatively small set of key interdependent players in terms of _______________ policy.

The study of macroeconomics focuses on the economy as a whole, including the growth in average income, and the rate at which prices are rising, which is related to _______________ policy.

Economics is traditionally divided into two parts: microeconomics and _______________.