ABSTRACT
As discussed in Chapter 1, a primary goal of the macroeconomy is to support a good standard of living.* This normally involves making it possible for people to gain the income needed to purchase goods and services. Nonmarket factors such as household production, publicly produced goods and services, leisure time, and a healthy environment, play an important role in determining living standards, but for most people in developed economies income from work is the main factor needed to support individuals and families. In this chapter we focus on paid employment, and on levels of employment and unemployment in the economy as a whole.
