Thursday, January 8, 2015

AP Economics Notes 1/7/15 

Macroeconomics- The study of the entire economy which covers the ups and downs of the economy. 
-Ex: GDP, Inflation, Unemployment 

Microeconomics- It is the study of parts of the economy in which people make decisions and how those decisions interact, basically a small segment.
-Ex: Supply and demand, Market Structure. 

Positive Economics- It describes the way that the economy actually works. 
-Ex: Minimum wage laws cause unemployment. 

Normative Economy- It describes the way the economy should work. 
-Ex: The price of gasoline is too high! 

Needs- Basic requirements for survival.
Wants- Desires of citizens

*P.S. These are the notes we took in class yesterday.

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