Econ 2301 Study Guide

1. Scarcity:how little of a resource there is 2. Opportunity Cost:what you must give up in order to to get/do something 3.Supply:how much can be made to sute the demand 4. Demand:how much of something is wanted over all 5. Price:how much something cost 6.

There are four main macroeconomic objectives of the government it wishes to achieve in order to maximise the welfare of the society, they are: low and stable inflation, a favourable current account position on the balance of payments, low unemployment and sustained economic growth.

Chapter introduces the concept of economics by identifying that it’s a social science that studies individuals and why they use scarce resources to fulfil their wants. Essentially, it highlights an important fact of how always want more than what can be provided. Hence, this can be differenated by both physical and psychological wants. Physical wants are known as items and things that are necessary for life although not all physical wants are needed to maintain homeostasis.

This course provides students with the basic theories, concepts, terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual

Prompt: Analyse how aggregate demand, aggregate supply, saving, investing, business cycles, and GDP effect the nation's economy (including types of unemployment, poverty, economic growth, and inflation).

Economic policies are aimed at finding satisfactory solutions to various problems that emerge from time to time in any economic system. In most instances, the so called problems present themselves in the form of inflation, unsatisfactory or poor economic growth and unemployment. It is not always simple and straight forward to solve such dilemmas, especially because their impact, implications and importance changes from time to time. (Roux, 2008).

ECON112 Macroeconomics Problem Set 1 *Solution* By Yao Amber Li Fall 2010 (Instructor: Li, Yao; TA: Fok Pik Lin, Astor)

The history of macroeconomic thought and policy was developed through different phases mainly marked by the depressions, recessions and expansion of the 1930s, 1960s, 1970s, 1980s, 1990s, and 2000s. Various macroeconomic theories were developed during these periods. Among them, Keynesian and classical economics addressed economic problems such as unemployment issue with similarities but also differences.

This paper will address the how the monetary policy has an impact on the factors of macroeconomics, such as gross domestic product (GDP), interest rates, inflation, and unemployment. According to the Federal Reserve, the Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy 's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.

With macroeconomics you can get a basic understating of concepts that deal with unemployment, inflation, business cycles, taxation, financial policies, and economic growth. Producers and consumers are the two most important in achieving a healthy and stable economy under free market capitalism. Consumers consume which in turn creates demand of a product or service while producers supply those products and services. In a supply and demand economy, there are many theories that try to further understand business transactions. With Law of Demand and Law of Supply we can determine the behavior of both the consumers and the producers. Law of demand determines that price and demand have an inverse affect to each other. As prices of a product and service increase, demand of a product and service will decrease and vice versa while

My academic aptitudes in Economics have always been testified throughout the undergraduate study.Through these years’ study in Economics at Boston University, I familiarized myself with different economic schools and their contradictory theories of business cycles and macro-control.Through case study in legal economics, I deepened understanding how to fulfill public benefits via economic rules and regulations. Through courses like Calculus and Econometrics, I enhanced the capacity and obtained

In modern society, it is vital to understand the principles and policies that make up our economy. Although many are unaware, the economic decisions made by the Feds, congress, and the president affect how individuals live, invest, and purchase on a day to day basis. As economic policies fluctuate and the value of the dollar increases or decreases, the demand, supply, and prices of goods fluctuate and determine individual 's standards of living and how they consume. Whichever economic policies are currently in effect determines the affordability of certain products, thus determining how individuals allocate their funds. The allocation of individuals funds determines how much profit companies and businesses make, which can either stimulate or slow down the overall economy. The breakdown of the primary economic policies, including demand-side, supply-side, and monetary policy, are the prime components that distinguishes how we as consumers are affected by the economy.

Economy holds great importance in our lives when it comes analyzing how money functions overall, what employment really means, and what kind of fluctuations affect the world we live in. It encompasses a great wealth of knowledge that allows us to understand and make sense of many occurrences and events in the world. Before delving into the details, this paper showcases the history behind how macroeconomics came into being and the main aspects of it.

Throughout the semester many concepts of macroeconomics and economics as a whole have been discussed thoroughly. Macroeconomics is defined as the study of the economy as a whole. The study of macroeconomics consists of many economic indicators. These economic indicators allow analysis of economic performance, predictions of future performance, and will indicate the overall health of the nation. Economists want to be able to forecast the direction the economy will take in the near future and they rely on different economic indicators. They have never agreed on a single economic indicator to predict the future. Some indicators are better than others, but none is consistently accurate; all give a false signal on occasion. The six economic indicators that will be focused on are Gross Domestic Product, Unemployment, Consumer Price Index, Retail Sales, Consumer Confidence, and Durable Goods. The economic indicators help see where the economy is in terms of the business cycle, which shows the rising and falling of economic conditions over time.

“Neoclassical macroeconomists believe that the short-term Phillips curve is inexistence. New classical macroeconomics adhering to the tradition of classical and effective to solution the economic recession and unemployment defects