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15: Introduction to Macroeconomics

Last updated

Jan 4, 2021
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- 14: The Building Blocks
- 16: Financial Markets and Economic Activity

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Part 2: Introduction to Macroeconomics

4.	Economic activity & performance
5.	Output, business cycles and employment
6.	Aggregate expenditure & aggregate demand
7.	The government sector

The four chapters in this part of the text introduce and develop the expenditure side of a basic traditional macroeconomic model. Chapter 4 explains the measurement of macroeconomic activity and performance. Then Chapter 5 introduces an aggregate demand and supply model of national output, the general price level and business cycles. Market based aggregate expenditure components that determine aggregate demand, when prices, interest rates and exchange rates are constant, are modelled in Chapter 6. Chapter 7 extends the expenditure model to include Government expenditure, taxes, budgets, public debt and basic fiscal policy.

Part 2: Introduction to Macroeconomics

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