ABSTRACT
Earlier chapters about the environment, health care, monopoly power, public finance, and income were associated with microeconomics. Now we turn to macroeconomics. Macroeconomics deals with the study of the entire economy and analyzes three matters: the level of real national output, the level of employment attained in producing that output, and the general level of prices. To be sure, a great variety of information is collected in the form of aggregate statistical data for the purpose of measuring general economic trends and performance (e.g., new housing starts, levels of business inventories, samples of consumers’ anticipated purchases, and anticipated new investment outlays by business). However, output, employment, and price levels remain the fundamental and principal proxies or variables of macroeconomics.
