Ch 16: Macroeconomics Principles for Business

About This Chapter

You can watch this chapter's video lessons to learn essential facts about macroeconomic principles. These lessons will cover different topics on macroeconomics and their applications to business.

Macroeconomics Principles for Business - Chapter Summary

Macroeconomics is a fairly complex field, and if you are trying to study the various principles of macroeconomics and their applications to business, it helps to have comprehensive study guides to help you learn these topics. In this chapter we have provided you with numerous video lessons, each of which will teach you about essential topics needed to understand macroeconomic principles for business.

Watch these lessons to get information on different types of economies and their components, as well as the major economic principles used in analyzing macroeconomic systems. Our lesson instructors will share their extensive experience teaching these subjects in a convenient online format. Watch these videos to learn about topics such as:

  • The definition and types of economies
  • Formal and substantive approaches to economic systems
  • Sectors of the modern economy
  • Economic distribution
  • The types and definition of political systems
  • Socialism, communism and mixed economies
  • Gross domestic products
  • The business cycle

Each video includes helpful tags that will allow you to jump to different points in the lesson that correspond to that topic's main points. The chapter also contains complete transcripts of each video for you to print out and study away from your computer. Once you complete the chapter, be sure to test your understanding of this subject by answering the questions in the chapter's practice quizzes and final exam.

15 Lessons in Chapter 16: Macroeconomics Principles for Business
Test your knowledge with a 30-question chapter practice test
What is Economy? - Definition & Types

1. What is Economy? - Definition & Types

An economy is a group of institutions and organizations that are involved in the production and distribution of resources in a society. Learn more about the economy and the definition of its different system types.

Economic Systems: Formal & Substantive Approaches

2. Economic Systems: Formal & Substantive Approaches

There are two main approaches to exploring economics: the formal approach, analyzing intentional decisions of resource use, and the substantive approach, involving how people adapt to change. Explore these two approaches to economic analysis in examples of different scenarios and cultures.

The Modern Economy: Primary, Secondary & Tertiary Sectors

3. The Modern Economy: Primary, Secondary & Tertiary Sectors

Modern economies are explored through the continuum of three sectors: primary, secondary, and tertiary. Learn about the features and characteristics of the three sectors of the economy, and the additional sectors which may arrive in future economic growth.

Forms of Economic Distribution & Exchange within Society

4. Forms of Economic Distribution & Exchange within Society

Every society has a different way of organizing the distribution and exchange of goods. In this lesson, explore some different forms of economic distribution and exchange, including generalized and balanced reciprocity, redistribution, and market exchange.

Political System: Types & Definition

5. Political System: Types & Definition

Each nation has a political system that defines the structure of its government. Understand the definition of political systems, and examine the five types of political systems; monarchies, dictatorships, oligarchies and aristocracies, communism, and democracies.

Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis

6. Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis

Economies can be set up using different systems, including socialism or communism, as well as capitalism. Gain understanding of socialism and communism by comparing and analyzing their features. Recognize that in reality, economic systems are mixed economies with features of more than one system.

Gross Domestic Product: Definition and Components

7. Gross Domestic Product: Definition and Components

Gross domestic product (GDP) is defined as the measure of the total output of goods and services in the economy within a given period of time. Explore the components of GDP and learn how to calculate it.

Real Output, Price Level and the Real Gross Domestic Product

8. Real Output, Price Level and the Real Gross Domestic Product

Real output, price level, and the real gross domestic product (GDP) are all related because increase in prices means increase in GDP growth. Learn about gross domestic product and inflation, real vs. nominal, changes in price level, and real output.

The Business Cycle: Economic Performance Over Time

9. The Business Cycle: Economic Performance Over Time

Economic progression has peaks and troughs as the economy fluctuates between expansion and recession. Explore the intricacies of the business cycle and how it describes economic performance over time.

Fiscal Policy: The Keynesian Revolution

10. Fiscal Policy: The Keynesian Revolution

Fiscal policy is when the government spends money to stabilize the economy. Learn how economists use gross domestic product to measure the economy, and explore the Keynesian revolution which started the fiscal policy and stabilization policy.

Fiscal Policy Tools: Government Spending and Taxes

11. Fiscal Policy Tools: Government Spending and Taxes

Fiscal policy is the management of government spending and tax policies to influence the economy. Explore the tools within the fiscal policy toolkit, such as expansionary and contractionary fiscal policies.

Expansionary Fiscal Policy and Aggregate Demand

12. Expansionary Fiscal Policy and Aggregate Demand

Discover how expansionary fiscal policy is used to stimulate aggregate demand. This lesson defines expansionary fiscal policy, examples of this policy, how it is illustrated, how it's effectiveness is reduced, and how aggregate demand increases.

Contractionary Fiscal Policy and Aggregate Demand

13. Contractionary Fiscal Policy and Aggregate Demand

An expansionary gap or an inflationary gap are indications of an economy that is overheating. Examine how aggregate demand and contractionary fiscal policy influence the economy.

Fiscal Policy and the Effects on Unemployment

14. Fiscal Policy and the Effects on Unemployment

Fiscal policy has a direct influence on unemployment through taxation and spending policies. This lesson will provide an introduction to fiscal policy, and explore taxation, government spending, and debt as they relate to unemployment.

Managing the Economy with Fiscal and Monetary Policies

15. Managing the Economy with Fiscal and Monetary Policies

Governments use both fiscal and monetary policies to manage economic activity within their respective countries. Learn about the difference, uses, effects, and tools of both kinds of policies by understanding their definitions and reviewing examples.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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