Study Guide Macroeconomics: The Big Picture 1. What is the definition of Economics? Macroeconomics? 2. Create...

Transcribed Image Text:

Study Guide Macroeconomics: The Big Picture 1. What is the definition of Economics? Macroeconomics? 2. Create a question or issue that would be typical of macroeconomics. 3. What is the "paradox of thrift"? What does it illustrate? 4. What is gross domestic product? What does it measure? 5. What was the classical theory that the economy is self-regulating? 6. What was the theory of John Maynard Keynes? 7. What happened in the Great Recession of 2008? 8. How was the Great Recession of 2008 different than the Great Depression of the 1930's 9. Looking at a longer view from 1988 to 2011, what happened overall to employment and industrial production? (see graph a) 10. In graph, it shows the year to year fluctuations in employment and industrial production. What does it tell you about 11. What is meant by the statement: "The economies forward march is not smooth" 12. What is the business cycle? 13. What is a recession? 14. What happens in a period of economic expansion? 15. What is a business cycle peak? 16. What is a business cycle trough? 17. What happens to the unemployment rate in a recession? 18. What does the National Bureau of Economic Research do? 19. What is long run economic growth? 20. In what ways has the standard of living improved over time? 21. What is inflation? 22. What is deflation? Why is deflation bad? 23. In the short run what causes inflation to fall? Rise? 24. In the long run, what causes inflation? 25. What is an open economy? 26. What is a trade deficit? Trade surplus? 27. Does a trade deficit mean an economy is not doing well? Study Guide Macroeconomics: The Big Picture 1. What is the definition of Economics? Macroeconomics? 2. Create a question or issue that would be typical of macroeconomics. 3. What is the "paradox of thrift"? What does it illustrate? 4. What is gross domestic product? What does it measure? 5. What was the classical theory that the economy is self-regulating? 6. What was the theory of John Maynard Keynes? 7. What happened in the Great Recession of 2008? 8. How was the Great Recession of 2008 different than the Great Depression of the 1930's 9. Looking at a longer view from 1988 to 2011, what happened overall to employment and industrial production? (see graph a) 10. In graph, it shows the year to year fluctuations in employment and industrial production. What does it tell you about 11. What is meant by the statement: "The economies forward march is not smooth" 12. What is the business cycle? 13. What is a recession? 14. What happens in a period of economic expansion? 15. What is a business cycle peak? 16. What is a business cycle trough? 17. What happens to the unemployment rate in a recession? 18. What does the National Bureau of Economic Research do? 19. What is long run economic growth? 20. In what ways has the standard of living improved over time? 21. What is inflation? 22. What is deflation? Why is deflation bad? 23. In the short run what causes inflation to fall? Rise? 24. In the long run, what causes inflation? 25. What is an open economy? 26. What is a trade deficit? Trade surplus? 27. Does a trade deficit mean an economy is not doing well?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 Economics is the study of how people manage resources in order to satisfy their needs and wants Macroeconomics is the study of the behavi... View the full answer