Macroeconomics

Front 1

Economic models

Back 1

A description of consumers and firms, their objectives and constraints, and how they interact.

Front 2

Long-run growth

Back 2

The increase in a nations productive capacity and average standard of living that occurs over a long period of time.

Front 3

Business cycles

Back 3

Short-run ups and downs, or booms and recessions, in aggregate economic activity.

Front 4

Gross Domestic Product

Back 4

The quantity of goods and services produced within a country's borders during some specified period time.

Front 5

Trend

Back 5

The smooth growth path around which an economic variable cycles.

Front 6

Models

Back 6

Artificial devices that can replicate the behavior of real systems.

Front 7

Optimize

Back 7

The process bu which economic agents (firms and consumers) do the best the can given the constraints they face.

Front 8

Equilibrium

Back 8

The situation in an economy when the actions of all the consumers and firms are consistent.

Front 9

Competitive Equilibrium

Back 9

Equilibrium in which firms and households are assumed to be price-takers, and market price are such that the quantity supplied equals the quantity demanded in each market in the economy.

Front 10

Rational expectations revolution

Back 10

Macroeconomics movement that occurred in the 1970s, introducing more microeconomics into macroeconomics.