Topic 1: Introduction to Macroeconomics

Key Points

  1. Review basic economic principles
  2. Understand that macroeconomics is the study of long-run growth and short-run economic fluctuations
  3. Describe the major macroeconomic markets – goods market, labor market, credit market (financial market) – and the price variables for each market
  4. Introduce the major forces driving long-run growth in output per worker and determine long-run trend growth
  5. Define demand shocks and their role in generating short-run economic fluctuations.
  6. Understand the role of the price mechanism in creating efficient economic outcomes

Overview Video

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