STUDY QUESTIONS FOR INTRODUCTION TO MACROECONOMICS

CHAPTER 1

1. What are some of the reasons to study economics?

2. What is the difference between macroeconomics and microeconomics?

3. What are some of the different "fields of study" (or specialities) in economics?

4. What is the difference between "positive" and "normative" economics?

5. What is the difference between a "theory" and a "model"?

6. What is meant by the "ceteris paribus" assumption in economics?

7. What are the four criteria discussed for judging economic performance?
Which of these criteria do you think is the most important?


CHAPTER 5

1. Summarize the brief history of macroeconomics.
How did the Great Depression change macroeconomics?
How did the stagflation of the 1970s 80s change macroeconomics.

2. What are the main concerns of macroeconomics?

3. What is meant by "fiscal policy"?

4. What is meant by "monetary policy"?

5. Ignore the section on "The Components of the Macroeconomy".

6. Ignore the section on "The Methodology of Macroeconomics".

7. What are the main phases of a typical "business cycle"?

8. Summarize the brief history of the U.S. economy since 1970.