IntermediateMicroeconomics.pptVIP

Intermediate Microeconomics -------------Introduction Part 1 MICROECONOMICS AND MACROECONOMICS Microeconomics The study of how households and firms make decisions and how they interact in markets Macroeconomics the study of the economy as a whole and economy-wide phenomena, including inflation, unemployment, and economic growth Part 2 Describing the relationship(1) Economic models Two key variables: Endogenous variable: Endogenous variables are those variables that a model tries to explain. Exogenous variable: Exogenous variables are those variables that a model takes as given. Par