Introduction to Macroeconomics
What is Macroeconomics
Macroeconomics examines economies at the aggregate (international, national, regional) level.
Some aspects of macroeconomics are about comparing two aggregate economies at the same time.
Why study the economy at the aggregate level?
Much of macroeconomics is concerned with policies such as money supply or tax policy which is national in scope.
Equilibrium effects means that outcomes are different when we consider the economy in aggregate.
There are certain phenomenon like economic growth and business cycles which affect the aggregate economy equally.
We can consider interesting dynamic questions.
Amateur History of Macroeconomics/Macroeconomic History
Around 1930, a major worldwide contraction occurred in virtually every developed economy.
For example, output in the USA fell by more than 20% and unemployment rose to 25%.
Decline in output continued for the better part of a decade.