Principles of Economics: Macroeconomics - The Big Picture

Welcome, congratulations and thank you for enrolling in this final chapter of our three-part Specialization, Macroeconomics. Please make sure to take look at all the welcome materials.

Alrighty then Econ 100. Welcome to Macro Measures. This is our first lecture in Act 3, the big picture. We made it to the big show, Macroeconomics. Here, the first thing we're going to do in macro, we're going to talk about our macro measures.

When we're talking about economic growth, what is the name of the game? The name of the game is raising standards of living. That's what we're trying to do with economic growth.

Welcome to labor supply and demand. Now, we've already talked about our labor market measures, our labor market variables. Now, we going to talk about the theory behind the labor market.

In this module we're going to be looking at the relationship between... well savings and consumption. We're going to look at how the relationship between the two affects changes in income and interest rates within our two period consumer model.

When you think savings and investment, you probably think of financial institutions-- You think stocks, bonds, Wall Street, maybe the stock market. That's where this story is taking place.

In this module, we're going to be talking about money and monetary policy. Monetary policy, how it's conducted by the Federal Reserve. The control the money supply to affect interest rates, inflation, and employment.

Here in aggregate supply and demand we are going to take everything we've done throughout the entire course and we're going to put all the pieces of the puzzle together and look at our aggregate supply and demand graph!

Welcome to fiscal policy, this is really government policy. We've talked about monetary policy with the Central Bank, with the Federal Reserve but as I told you, they're an independent institution they're not really part of the government.