ECON 101 1st Edition Lecture 10Introduction to MacroeconomicsIntroduction: In contrast to what we’ve previously studied, microeconomics, macroeconomics is concerned with the performance of entire economics, no matter how small.  Macroeconomics is the study of the interaction of many markets andhow they work together to determine the answers that each nation’s economy gives to some the basic questions that we asked at the beginning of the course.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.The chart shows median income and unemployment rate for the past decade:As seen here, there has been a sharp fall in median household income from January 2000 and a very sharp rise in unemployment that has persisted after the recession of 2008-09 officially ended. We will discuss the implications of these and other trends soon When studying macroeconomics we want to know how the economy acts to insure that: 1. All resources are fully employed, so that the economy is notoperating inside its production possibilities curve, leavingproductive resources, primarily labor, unemployed;2. Price levels remain as stable as possible. Inflation has been aphenomenon of universal concern since the development ofmoney, and the central macroeconomic issues have often beenstated as the tradeoff between unemployment and inflationCentral Concerns of Macroeconomics: The Central Concerns of Macroeconomics Before we try to understand how the macro economy works in detail, we need to know more about the two central problems that it faces: unemployment and inflation.  Unemployment is the state of desiring to work but not having a job. To be unemployed one must be in the labor force, the total quantity of people holding or seeking jobs. Ifyou are not employed and are not actively seeking work, youare not unemployed, although some economists haveemphasized that unemployed persons who have looked a long time for a job a a job and have gotten demoralized oftenjust quit looking. These people are called discouraged