Unit Overview
This unit shifts from individual markets to the performance of entire economies. We examine how national income is measured, why inflation occurs, how unemployment is classified, and how economic activity fluctuates over time.
By the end of this unit, you will understand how macroeconomic indicators interact and how aggregate supply and demand models explain short-run instability and long-run growth.
Learning Objectives
- Measure GDP using expenditure and income approaches.
- Explain the causes and consequences of inflation.
- Differentiate types of unemployment.
- Interpret business cycle fluctuations.
- Apply the Aggregate Supply and Aggregate Demand model.
- Explain determinants of long-run economic growth.
Lessons in This Unit
Lesson 3.1: Measuring GDP
National income accounting and output measurement.
Lesson 3.2: Inflation
Price indices, causes of inflation, and purchasing power.
Lesson 3.3: Unemployment
Labor market dynamics and classifications.
Lesson 3.4: Business Cycles
Economic expansions, recessions, and fluctuations.
Lesson 3.5: Aggregate Supply & Demand
Macroeconomic equilibrium and policy impact.
Lesson 3.6: Economic Growth
Capital accumulation, productivity, and long-run expansion.
Unit Assessment
- Complete the Unit 3 Quiz
- Analyze recent GDP and inflation data
- Graph Aggregate Supply and Demand scenarios
Self-Paced Learning Guidance
Macroeconomics builds conceptual understanding of national and global economic performance. Move sequentially through each lesson, apply models carefully, and reflect on real-world data.