Question

Discuss 5 things you learned in Macroeconomics class from Modules/Weeks 7-15 only, that you can now or will be able to apply to your forthcoming career, your current career or in your personal life.

Models are:

1) GDP

2) Inflation, Unemployment

3) Business Cycle, Growth,

4) Long Run Growth

5) Fiscal Policy

6) Money, Banks, Federal Reserve

7) Monetary Policy

8) The Multiplier Effect, Macro models - Aggregate Expenditures

Answer 1

1) Gdp: it is the monetary value of final good and service produce in a financial year by factor of production within the domestic boundaries of particular country.

2) inflation is an increase in the general price level in an economy due to which Inflation the cost of living rises as the price of goods and services rise.

Unemployment :when a person who wants work at functional prices or wages andactively searching for employment ,but he or she is unable to find work, called unemployed and this phenomena called unemployment.

3) fiscal policy : it is the budgetary policy of government about revenue and expenditure during a given year . Revenue compromise taxation, debt from foreign as well as domestic market (banks, public) or through disinvestment of government property, while expenditure contains welfare expenditure, capital expenditure and income to the factor of production of good and service , interest payment etc.

4) The business cycle or the economic cycle or trade cycle, is the downward and upward movement (of gross domestic product (GDP) around its long-term growth trend .

Economic growth: it is the increase capacity of an economy to produce goods and services from one period of time to another.

5)

Long run economic growth:when their is an increases in gdp over a period of time due to Accumulation of capital

stock,Increases in labor inputs, Technological advancement , then it is long term economic growth.