Topic 1 - Intro to Macro Flashcards
1
Q
Definition of Macroeconomics
A
Analyzes the aggregate quantities and prices of the entire economy, as well as other aggregate variables
2
Q
What are some examples of macroeconomic variables?
A
Aggregate Production, Inflation, Unemployment, Interest rates, exchange rates, etc.
3
Q
What are the 2 schools of macro thought?
A
- Classical School
2. Keynesian School
4
Q
What does the classical school believe?
A
Markets can operate by themselves without government intervention
5
Q
What does the Keynesian school believe?
A
Markets need government intervention as it improves the overall functioning of the economy
