1907 12-6 What question macroeconomics answers? The Determination of Output Why is average income high in some countries and low in others? Unemployment:Why do production and employment expand in some years and contract in others? inflation:Why do prices rise rapidly in some time periods while they are more stable in others? The Open Economy Why does the U.S.have such a huge trade deficit? The business cycle and growth in the long-run Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 12-6 What question macroeconomics answers? • The Determination of Output : Why is average income high in some countries and low in others? • Unemployment: Why do production and employment expand in some years and contract in others? • inflation:Why do prices rise rapidly in some time periods while they are more stable in others? • The Open Economy : Why does the U.S. have such a huge trade deficit? • The business cycle and growth in the long-run