1. Because of the economy
What is the economy?

2. Welcome to ECON 202 - Principles of Macroeconomics, Unit 1.

3. Who is Jim Luke?
jimluke.com
econproph.com

4. Who are you?

6. Basics
D2L
jimluke.com
macro.econproph.net
econproph.com

7. How's the economy doing?

8. What to do?

9. We'll study “the economy” – its structure, goals, performance, and policy.
Motivation– The Big Questions
Historical Roots
Macro concerns
Types of Policy Options

10. Society’s Goals for the Macroeconomic System
Growth
Stable Price Level (value of money)
Full Employment
Cyclical Stability

11. There are several major Schools of Thought, or Theories, in macro.
Austrian
Neoclassical
Keynesian
Radical or Heterodox

12. In macro, experiments are hard but ideology easy.
Aggregate social science
‘controlled experiments’
Explain & recommend
Models & assumptions
Ideology
not micro summed

13. Errors and fallacies are easy to make in macro.
composition
money
government as household
scale
static institutions

14. Thanks Motivation– The Big Questions Historical Roots Macro concerns
Types of Policy Options