Overview of Macroeconomics

Short run in macro is a couple years or so while in micro, the short run is equal to the time where firms can’t change their amount of fixed capital.

Long run in macro is decade to decade or generation to generation, while micro is equal to the amount of time it takes for a firm to be able to enter/exit an industry or change capital(K).

Some people will over respond to a loss and become risk averse even though they we risk lovers before.

People act impulsively in the short run than they do in the long run.

a whole formed by combining many different elements.

There is no change in the amount of output produced per person over time

The amount of output produced by each person is going down

The amount of output produced per person is increasing over time

Real GDP per capita= output per person

output/inputs

Greater quantity and productivity of resources

total amount of various products produced

hit max before going down

hit local minimum

Time period when the economy hits a peak and then fall until it hits a trough

Begins once we hit a trough until we are recovered in which case the time after that is considered expansion

1. the economy has passed it’s previous peak
2. getting back on the trend line

Not an official economic term but when the recession is so bad that everyone gets depressed

After we have recovered we are in expansion in until we hit the next peak

out of work for 4 weeks and have looked for work for the last 4 weeks

increase