Review and Preview
What is the definition of economic growth?
- No change in the amount of goods and services produced by an economy over time
- An increase in the amount of goods and services produced by an economy over time
- A decrease in the amount of goods and services produced by an economy over time
Monetary Policy: The process by which the government, central bank, or monetary authority of a country controls the supply of money, availability of money, and cost of money or rate of interest to attain a set of objectives oriented towards the growth and stability of the economy. Fiscal Policy: The use of government spending and revenue collection to influence the economy. Fiscal policy can be used to stabilize the economy over the course of the business cycle.
Some New Concepts:
Macroeconomics is sometimes referred to as 'big picture economics' as it focuses on the overall performance of the economy. The field of macroeconomics is closely related to the fields of finance, banking, and international economics. The field of macroeconomics is largely concerned with understanding how different economic sectors interact with each other and how these interactions affect the overall performance of the economy...Remember the Circular Flow Model!!
Did you know?
What are some factors that can contribute to economic growth?
- Increased productivity, investment, innovation, education
- No impact on economic growth
- Decreased productivity, investment, innovation, education
What factors affect economic growth and how can we measure it?
Which country has experienced the highest average annual rate of economic growth since 1980?
What have you learned about macroeconomics so far?
What do you think about macroeconomics?
- I love it and find it fascinating!
- It's interesting but I don't understand it very well.
- It's too complicated and I don't like it.
- I don't know much about it yet.
What questions do you still have about macroeconomics?