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1. Digital Study Guide, written by William Walstad
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After reading this chapter, you should be able to:

1. Interpret how macroeconomics studies both long-run economic growth and short-run fluctuations in output and unemployment.
2. Explain why economists focus on GDP, inflation, and unemployment when assessing the health of an entire economy.
3. Discuss why sustained increases in living standards are a historically recent phenomenon.
4. Identify why saving and investment are key factors in promoting rising living standards.
5. Describe why economists believe that "shocks" and "sticky prices" are responsible for short-run fluctuations in output and employment.