Macroeconomics Introduction

Macroeconomies Introduction Economy is how individuals and societies allocate scarce resources. Scarcity: Limited resources and uncimited wants. Scarce resources VS Free resources give up something to getit as much as you want NORMATIVE STATEMENT POSITIVE STATEMENT Opinion, ethics, fair/unfair What can be tested. Economy starts from a complex real-world, makes simplifying assumptions and creates models. Theyare dangerous because can't be tested in an absolute way. COMMAND ECONOMY Government owns farms, factories, supermarkets and decides who gets products