Introduction to Macroeconomics

These flashcards cover key concepts from the lecture on macroeconomics, including definitions of GDP and GNP, the role of different policies, and comparisons between macroeconomic and microeconomic questions.

Macroeconomics

• examines the aggregate behaviour of the economy

What is aggregate demand?

Aggregate demand is the total demand for final goods and services in an economy at a given time.

What is monetary policy?

Monetary policy involves managing the quantity of money in an economy to influence interest rates and overall economic activity.

What is the purpose of government intervention according to Keynesian economics?

Keynesian economics advocates government intervention to stimulate aggregate demand during economic downturns.