BASIC INTRODUCTION TO MACROECONOMICS‚ TOOLS AND TERMINOLOGIES By- Rhit Srivastava MBA –PM(05) IIHMR Economics • Economics is the social science that studies economic activity to gain an understanding of the processes that govern the production‚ distribution and consumption of goods and services in an exchange economy Types of economics • Macro economics : Concentrate on large picture of economy. • Microeconomics: • Microeconomics deals with behavior of individual market and the business‚ consumer
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came into picture 1.Get govt to spend on public works program which is relatively cheaper 2.Put money into the hands of the people‚increase in the consumption The problem is that of lack of aggregate demand.He gave a fiscal policy kind of solution..Why? Aggregate demand was tackled.. Either through fiscal or monetary policy. Rate of interest – change in investment – change in demand It is not just rate of interest‚ marginal efficiency of capital.(Keynes said that) AD- CONSUMPTION‚INVESTMENT
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Macroeconomics and microeconomics explained Macroeconomics and microeconomics forms the two major important studies within the branch of economics that are both essential in sustaining the overall growth and standard of the economy. They are interdependent and work in liaison with one another. However they differ in a number of ways both in terms of their scope and implementation. Whereas microeconomics tends to focus on smaller business sectors‚ macroeconomics focuses on the larger income of a
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• Micro vs. Macro • Microeconomics – the study of how individual households and firms make decisions and how they interact with one another in markets. • Macroeconomics – the study of the economy as a whole. – Its goal is to explain the economic changes that affect many households‚ firms‚ and markets at once. • The Two Groups of Economists • Macroeconomists • Focus on the economy as a whole. • Spend much time analyzing how total income changes and how changes in income cause changes in
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Circulation in macroeconomics Macroeconomics (from Greek prefix "makros-" meaning "large" + "economics") is a branch of economics dealing with the performance‚ structure‚ behavior‚ and decision-making of an economy as a whole‚ rather than individual markets. This includes national‚ regional‚ and global economies.[1][2] With microeconomics‚ macroeconomics is one of the two most general fields in economics. Macroeconomists study aggregated indicators such as GDP‚ unemployment rates‚ and price
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Lesson 4 1. If an economy produces final output worth $5 trillion‚ then the amount of gross income generated by that production: is $5 trillion 2. Which of the following would not be ian expenditure on a final good or service? a medical clinic’s purchase of flu vaccine 3. Which of the following would be included in GDP? payment of the monthly telephone bill by Mr. Laconic 4. Consumption in the expenditures approach to calculating GDP includes: purchases of medical services at the local clinic
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the market system. Resource prices also determine the cost a product or good. The higher the resource price‚ the higher the cost of production‚ and price of the good would be‚ which brings you to supply and demand. If you able to produce a product at a certain price and consumers keep buying‚ then you would not have to make any adjustments in price unless there was a change in production‚ labor‚ or technology. Keep in mind that if a company doesn’t make profit‚ then the price can be adjusted. Ferrari’s
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one-------------------------------------------------------------------------------------2-3 AD=G+I+X-M--------------------------------------------------------------------------------2-3 Part two--------------------------------------------------------------------------------------4-5 Macroeconomic objective----------------------------------------------------------------4-5 Part three--------------------------------------------------------------------------------------5-7 Conflicts----
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Fundamentals of Macroeconomics D.A. Torrez ECO/372 October 25‚ 2012 Kirk Marangi Fundamentals of Macroeconomics What is economics? Economics is the study of what people do to coordinate their want and desires through production‚ distribution‚ and consumption of goods and services (Colander‚ 2010). To understand economics‚ one has to understand the basic fundamentals of economics. Economics is based on two groups’ macroeconomics and microeconomics. So what is macroeconomics? Macroeconomics is the
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Introduction to Macroeconomic Policy Tuesdays and Thursdays‚ 4:00 pm – 5:30 pm‚ Leacock 132 ***** I. Housekeeping Details 1. Office Hours. My office hours are Tuesdays and Thursdays from 10:00 am - 11:00 am. If you are unable to see me then‚ please speak to me to arrange an appointment. 2. Required Textbook and MyEconLab. The textbook for this class is the macroeconomics half of Economics‚ by C. Ragan and R. Lipsey (13th Canadian Edition‚ published by Pearson Canada). You can also purchase
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