Alright. So let's quickly discuss the difference here between microeconomics and what we're studying here, macroeconomics. Economics, in general, is defined as a social science focused on the decisions made by individuals, institutions, and society under conditions of scarcity. The key idea here is scarcity, where we have scarce resources and how we are going to use these resources. The decisions that we make on an individual level and on larger levels as well.
In microeconomics, a course might teach you about the choices that individuals and businesses make, such as how prices affect a market for a certain product, the supply and demand of a product, how a business maximizes its profit, and how many laborers to hire. These are all micro ideas on a small scale, concerning what one business or one person might do in one market.
However, here in this course, we're talking about macroeconomics, which deals with the 'big picture'. We're discussing bigger issues, studying the economy as a whole, focusing on nations, not just national but global economics. We're going to deal with bigger ideas like recessions and what causes recessions, the causes of economic booms, and inflation. We'll explore how inflation affects interest rates and the supply of money, along with issues like unemployment. We aim to understand the reasons why unemployment happens, the types of unemployment that exist, and the effects they have on the economy.
Here in this course, we're focusing on macroeconomics, but you might also encounter questions that ask whether a specific issue deals with microeconomics or macroeconomics. It's good to understand the difference between the two.
Alright, let's go ahead and move on to the next topic.