One big difference to keep in mind while going through Macroeconomics is that we are no longer concerned with what is best for the individual. Instead, we are worried about what is best for the entire economy.
The first thing we need to look at is how do we tell if an economy is doing well? There are lots of different economic indicators that we could use to find that out, but in the end there are three big indicators that we rely on the most: unemployment, inflation and GDP.
These three indicators serve two purposes. The first is that they generally indicate how the economy is going. So, by watching them, we can see how the economy as a whole is trending. The second purpose relates to fixing the problems once they've been identified. We will get to that later.
GDP has a second, 1 slide, power point that describes the formula for calculating GDP. This is the only formula we have to memorize.
Of our two indicators we generally think of unemployment and inflation as bad things. GDP is a good thing. Thus we want the first two to stay low and for GDP to continually rise.
Go through the power points for Unemployment, Inflation and GDP.
Answer the worksheets for the 3 indicators as well.
Power Points:
Worksheets:
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