Summary |
Macro economics considers the performance of the economy as a whole. It considers the larger picture, or how all these decisions sum together. Macro economics descends from two areas of research: Business cycle theory and monetary theory. Business cycle theory attempted to describe the frequent, violent shifts in economic activity. Most theories focused on a single factor, such as weather or monetary policy. An understanding of microeconomics is crucial to understand macroeconomics. This book is primarily focused on the actions of individual agents, such as firms and consumer, and how their behavior determines prices and quantities in specific markets.
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