Chapter 18
Introduction to Macroeconomics
By Boundless
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Macroeconomics is a branch of economics that focuses on the behavior and decision-making of an economy as a whole.
Money can either be consumed, invested, or saved (deferred consumption or investment).
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A financial market or system is a market in which people and entities can trade financial securities, commodities, and other fungible items.
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The term business cycle refers to economy-wide fluctuations in production, trade, and general economic activity.
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A recession is a business cycle contraction; a general slowdown in economic activity.
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When the economy is not at a steady state, the government and monetary authorities have policy mechanisms to move the economy back to consistent growth.
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Long run growth is the increase in the market value of the goods and services produced by an economy over time.