Chapter 6: Introduction To Macroeconomics Flashcards
1
Q
Macroeconomics
A
Study of economy as a whole
2
Q
Macroeconomics studies
A
Long-run economic growth and short-run economic fluctuations
3
Q
3 key macroeconomic statistics
A
1- real gdp (gross domestic product)
2- unemployment
3- inflation
4
Q
GDP
A
Value of final goods and services produced within borders of a country
5
Q
Economic growth
A
Output grows faster than population
6
Q
An economy can only grow by…
A
Investing
7
Q
Saving
A
Current spending less than current income
8
Q
Investment
A
Resources devoted to increasing future output
9
Q
Demand shocks
A
Unexpected changes in demand
10
Q
Supply shock
A
Unexpected change in supply
