Economics (McConnell), AP* Edition, 20th EditionChapter 24:
An Introduction to Macroeconomics After studying this chapter, you should be able to: LO 24.1 | Explain why economists focus on GDP, inflation, and unemployment when assessing the health of an entire economy. | LO 24.2 | Discuss why sustained increases in living standards are a historically recent phenomenon. | LO 24.3 | Identify why saving and investment are key factors in promoting rising living standards. | LO 24.4 | Describe why economists believe that "shocks" and "sticky prices" are responsible for short-run fluctuations in output and employment. | LO 24.5 | Characterize the degree to which various prices in the economy are sticky. | LO 24.6 | Explain why the greater flexibility of prices as time passes causes economists to utilize different macroeconomic models for different time horizons. |
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