Macroeconomics - Chapter 19: GDP: Measuring Total Production and Income

Microeconomics is the study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices. Macroeconomics is the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth. The business cycle refers to alternating periods of economic expansion and economic recession. An expansion is the period of a business cycle during which total production and total employment are increasing. A recession is the period of a business cycle during which total production and total employment are decreasing. Economic growth refers to the ability of an economy to produce increasing quantities of goods and services. The inflation rate is the percentage increase in the price level from one year to the next.