In this module, you will look at the “big picture.”   Countries and governments deal with the reality that there are not enough resources for the wants and needs of a country’s citizens, just like you do for your own wants and needs.  How do all the economic decisions made by people in households all over the country affect the entire world?  Studying the bigger picture, or macroeconomics, helps government officials create better policies to achieve a higher standard of living for countries.  When studying the bigger picture, economists consider some of the following:

• What makes a country rich or poor?
• What determines the value of a country's currency?
• Why do we depend on other countries for goods and services?
• How can we avoid a recession?

Pre-Assessment:

Using the Internet, find three definitions of macroeconomics using three different websites.  Once you have read all three definitions, compose your own definition of macroeconomics and post it to the discussions area.

Return to the topic several times over the next few days to read your coursemates’ definitions. Reply to at least two of them, being sure to ask questions, and encourage further conversation.

Key Vocabulary:

To view the definitions for these key vocabulary terms, visit the course glossary.