After studying this topic, you should be able to understand
- Economics studies as to how the society can allocate its limited resources most efficiently.
- The field of economics has been divided into distinct areas of study: microeconomics and macroeconomics.
- With the advent of Keynes’ book, The General Theory of Employment, Interest and Money in the year 1936 began the Keynesian era. It was followed by the development of the supply side economics.
- Whether it is an individual, consumer, firm, or government, macroeconomics is important for all.
- The variables in any economic model can be a stock or a flow.
- A static relationship exists when all variables relate to the same time period and a dynamic relationship ...