sport exersices

1. Macroeconomics is the study of the economy as a whole. The main macroeconomic issues are inflation, unemployment, economic growth and the ability of government to affect these indicators.
2. Macroeconomics differs from microeconomics in that it focuses on the interactions of decisions made by firms and households which is represented in the circular flow diagram.
3. Households supply firms with factors of production that firms use to produce goods and services. In return firms provide households with income which they spend to buy goods and services produced by firms.
4. The inflation rate is the percentage increase in the average price of goods and services. During the last 20 years prices in the USA have been rising every year. The inflation rate that was 1% in 1961 reached more than 13% in 1979, followed by the process of decreasing inflation to a lower level in the mid-1990s. (By)According to international standards the inflation rate in the US was low.
5. The international comparison of real GNP is made on per capita basis. No matter how significantly one country is lagging behind another in the level of living standards, if the lagging country has higher GNP per capita growth, it will eventually overtake the rival country. Thus, rapid economic growth in Japan over the last 30 years allowed it to leave behind many other countries.
6. In the 1970s unemployment in the US was growing on average. The unemployment rate varies greatly across different social groups (groups of population). It was especially high among the youth and black Americans. The unemployment rose sharply in Europe. Japan has the lowest unemployment rate among major countries.
7. When the economy is booming output is high, unemployment is low, while inflation tends to rise. When the economy is recessing output is low, unemployment is high, while inflation tends to decrease.
8. There is no serious proof that inflation reallocates wealth from the poor to the rich.