{"id":120,"date":"2025-06-05T15:26:00","date_gmt":"2025-06-05T19:26:00","guid":{"rendered":"https:\/\/people.bsu.edu\/econbriefs\/?p=120"},"modified":"2025-06-05T15:26:00","modified_gmt":"2025-06-05T19:26:00","slug":"top-10-macroeconomics-concepts-by-dr-cecil-bohanon-and-dr-john-horowitz","status":"publish","type":"post","link":"https:\/\/people.bsu.edu\/econbriefs\/2025\/06\/05\/top-10-macroeconomics-concepts-by-dr-cecil-bohanon-and-dr-john-horowitz\/","title":{"rendered":"Top 10 Macroeconomics Concepts \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz"},"content":{"rendered":"<p><span data-contrast=\"auto\">What economic concepts are most important for citizens? Here is our top-ten list of macroeconomic concepts.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">First, gross domestic product (GDP) is the monetary value of all final goods and services produced in an economy. GDP is a less than perfect but consistent way to measure economic growth and compare the size of countries&#8217; economies.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Second, GDP does not include household production, such as cleaning, yard work, and raising children, nor the underground economy, and has other conceptual flaws, but as noted above, it is a consistent measure.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Third, people with jobs are employed. People who don&#8217;t have jobs and are looking for work are unemployed. The sum of the two is the labor force. The unemployment rate is the number of people unemployed divided by the labor force. People who don&#8217;t have a job and are not looking for a job are not in the labor force.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Fourth, there are several measures of the money supply. M1 includes currency held by the public and the amount in their checking accounts. M2 includes M1 plus the amount of money in savings accounts and money market funds.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Fifth, inflation is the amount by which prices increase from year to year. In the long run, inflation is caused by the money supply increasing faster than the increase in the production of goods and services.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Sixth, economic growth occurs when an economy&#8217;s ability to produce more goods and services increases from one period to another. Economic growth is why extreme global poverty has dramatically decreased over the last 100 years. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Seventh, a budget deficit occurs when a government spends more than its tax revenue. The government borrows money to cover the deficits. The national debt is the accumulation of the amounts borrowed by the US federal government, and in 2023, was at about $33 trillion.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Eighth, in the short-run, GDP and the price level are determined by aggregate demand and aggregate supply for goods and services. In the long-run, GDP is determined by innovation in the economy.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Ninth, fiscal policy is governments\u2019 spending and taxes. Fiscal policy can affect aggregate demand. More government spending and lower taxes increase aggregate demand and vice-versa.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Tenth, monetary policy is the Federal Reserve&#8217;s actions that affect short-term interest rates that influence aggregate demand through borrowing costs to businesses and consumers.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As we mentioned in our top ten microeconomics list, the scarcity created by a top-ten list leaves out many other vital concepts!\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What economic concepts are most important for citizens? Here is our top-ten list of macroeconomic concepts.\u00a0\u00a0 First, gross domestic product (GDP) is the monetary value of all final goods and services produced in an economy. GDP is a less than perfect but consistent way to measure economic growth and compare the size of countries&#8217; economies.\u00a0 [&hellip;]<\/p>\n","protected":false},"author":112,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[1096,739,147,4,1187,42,1186,317,249,1183,7,601,1184,106,348,265,1185,609,318,1182,6],"class_list":["post-120","post","type-post","status-publish","format-standard","hentry","category-macroeconomics","tag-budget-deficit","tag-economic-growth","tag-economics","tag-federal-reserve","tag-fiscal-policy","tag-gdp","tag-global-poverty","tag-goods","tag-government-spending","tag-household-production","tag-inflation","tag-jobs","tag-labor-force","tag-macroeconomics","tag-money-supply","tag-national-debt","tag-savings-account","tag-scarcity","tag-services","tag-underground-economy","tag-unemployment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Top 10 Macroeconomics Concepts \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz - Econ Briefs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/people.bsu.edu\/econbriefs\/2025\/06\/05\/top-10-macroeconomics-concepts-by-dr-cecil-bohanon-and-dr-john-horowitz\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top 10 Macroeconomics Concepts \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz - Econ Briefs\" \/>\n<meta property=\"og:description\" content=\"What economic concepts are most important for citizens? 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