What Is Macroeconomics?

Question 1

Define Macroeconomics

Answer 1

Study of growth, inflation, and unemployment

Question 2

Why do we want macroeconomics?

Answer 2

More stuff is produced

Question 3

Growth goals for GUI?

Answer 3

Growth- 3%
Unemployment- 5%
Inflation- 3%

Question 4

Fiscal Policy

Answer 4

Governments decisions about spending and taxes

Question 5

Monetary Policy:

Answer 5

Governments decisions about the supply of money and interest rates

Question 6

Real GDP

Answer 6

GDP plus inflation

Question 7

Real GDP

Answer 7

RGDP= Consumer + Inflation + Gov + (Imports-Exports)

Question 8

How to Count GDP

Answer 8

Domestic, made in the last year, final goods, only market activity, no gov payments, no stocks