ECON 0110 1st Edition Lecture 1INTRODUCTION TO MACROECONOMICSIn this first lecture, we talked about the syllabus and the general introduction of the Macroeconomics.MICROECONOMICS:Examines the behavior of individual consumers, workers, firms and industriesMACROECONOMICSExamines the behavior of the overall US economyMAJOR MACROECONOMIC POLICY GOALS1. Promote maximum production (Economic growth)2. Promote maximum purchasing power (Stable prices)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.3. Promote maximum employment4. Smooth out business cycle fluctuationsECONOMIC POLICY: Government actions to influence the economy1. FISCAL POLICY:a. Tax lawsb. Government spendingDetermined by Congress and the President2. MONETARY POLICY:a. Influence the money supplyb. Influence interest ratesConducted by the Federal Reserve SystemTYPES OF ECONOMIC STATEMENTSDESCRIPTIVE STATEMENTS:Economic facts or dataPOSITIVE STATEMENTS:Statements or theories about how the economy worksNORMATIVE STATEMENTS:Value judgments about what is good or badPolicy statements about what courses of action should or ought to be
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