An argument for studying macroeconomics

Rather than answering million or billion dollar questions like microeconomists, macroeconomists try to answer trillion dollar questions.

E.G. Why is actual output below potential output & when (or will) it come back to trend?

PotentialvActual

From Yuriy Gorodnichenko (both the idea and the graph).

About ozidar

Graduate student at UC Berkeley, studying public finance & labor economics. https://sites.google.com/site/omzidar/
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One Response to An argument for studying macroeconomics

  1. Barry says:

    Shouldn’t potential GDP be shifted due to the evident structural break?

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