Compare macroeconomics with microeconomics, and give an example of each
Macroeconomics- the study of the behavior and decision making of entire economies
Microeconomics-the study of the economic behavior and decision making of small unirs, such as individuals, families and businesses
Macro- The Great Depression
Micro- the price of milk going up
How does gross domestic product provide a means to analyze economic growth?
Economists can look at GDP’s and predict a business cycle
What does GDP tell economists about business cycles?
When inventories are accumulating reductions in the productions of goods becomes widespread, and as firms reduce their output, many workers are laid off, As payrolls are reduced, the unemployment rate rises, and GDP falls
Give one example of a new technology that has resulted in greater productivity for the Unites States
(A) How do patents and copyrights promote innovation
(B) How does innovation help the economy?
a) They assure the creator of a process or item the right to make money off their invention for a certain time period.
b)It adds a new product and field into the economy, helping it advance to a new stage.
Describe and analyze how economic stability is measured?
Economic stability is measured in two ways. First it can be measured by the coefficient of variation(stability of output growth) or secondly by the 10 year average for inflation
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