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Introduction to Macroeconomics Lecture Notes

Introduction to Macroeconomics Lecture Notes Robert M. Kunst March 2006. 1 Macroeconomics Macroeconomics (Greek makro = big') describes and explains economic processes that concern aggregates. An aggregate is a multitude of economic subjects that share some common features. By contrast, microeconomics treats economic processes that concern individuals. Example: The decision of a firm to purchase a new o ce chair from com- pany X is not a macroeconomic problem. The reaction of Austrian house- holds to an increased rate of capital taxation is a macroeconomic problem.

complain about such experiments, and with a good reason) and focuses on ... stable prices, full employment, external equilibrium, just distribution 1. of income; according to the EMU criteria, focus on in flation (around 2%), ... therefore only limited …

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