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Illustrate the overview and importance of macroeconomics?
After familiar with this illustration, able to know:
a. An overview of macroeconomics is the study about the economy like an entire and how this is different by microeconomics.
b. T he significance of the business cycle and why policymakers look for reduce the severity of business cycles.
c. What long-run development is and how this determines a country’s standard of living
d. The importance of deflation and inflation and why price stability is preferred
e. What is unique regarding the macroeconomics of an open economy, an economy which trades goods, services and assets along with the other countries
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Explain how inflation unemployment trade-off is not feasible under adaptive expectation.MEC002
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