EC4004 Lecture 2 Macroeconomic Stability

This document provides an overview of macroeconomic concepts including national accounts, growth accounting, and the Solow growth model. It discusses how factors like technology, capital stock, and labor force contribute to economic growth. The Solow growth model assumes steady state growth and constant returns to scale. In steady state, the capital-labor ratio remains constant and savings must equal investment. The document also shares a quote from Beatriz Orresta about her family struggling to afford food due to declining incomes during difficult economic times.