Important issues in macroeconomics Why does the cost of living keep rising? Why are millions of people unemployed,even when the economy is booming? Why are there recessions? Can the government do anything to combat recessions? Should it?? CHAPTER 1 The Science of Macroeconomics slide 3 CHAPTER 1 The Science of Macroeconomics slide 3 Important issues in macroeconomics ▪ Why does the cost of living keep rising? ▪ Why are millions of people unemployed, even when the economy is booming? ▪ Why are there recessions? Can the government do anything to combat recessions? Should it?? 1