In lesson, we move into the formal study of macroeconomics, laying the groundwork for lessons to come. In particular, this lesson introduces several important macroeconomics concepts and notions. Among the list of more important notions are the role an economy plays in the study of macroeconomics, the two key macroeconomic problems of inflation and unemployment, how these problems are related business-cycle instability, and economic stabilization policies designed to correct these problems.

• The first unit of this lesson lays the foundation of for the study of macroeconomics, introducing the nature of an economy and providing a little information about the U.S. economy.
• In the second unit, we examine some of the more notable macroeconomics problems, especially production, unemployment, and inflation.
• We then take a look at the importance of business cycles in the macroeconomy, including recent trends in business cycle activity and a few potential business cycle causes.
• The fourth unit then examines the role that economic policies play in the macroeconomy.
• The firth unit wraps up this lesson with a few thoughts about the connection between political philosophies, economic policies, and economic theories.

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