Macroeconomic Objectives

Topics: Inflation, Macroeconomics, Unemployment Pages: 8 (2188 words) Published: July 15, 2013


Part one-------------------------------------------------------------------------------------2-3 AD=G+I+X-M--------------------------------------------------------------------------------2-3

Part two--------------------------------------------------------------------------------------4-5 Macroeconomic objective----------------------------------------------------------------4-5

Part three--------------------------------------------------------------------------------------5-7 Conflicts--------------------------------------------------------------------------------------5-7


Macroeconomic assignment

Elvis yu


There are macroeconomic assignment to explain some problem about the objective and effect of macroeconomic. In this essay , I have readly to introduction 4 parts. Firstly I will talk about the define of the macroeconomic and the effect to you. Than I will introduction the macroeconomic objective, there are 6 points to explain to you for know how to use and the important effect. Thirdly, I will talk about some Conflicts, to explain the difficult of development economic. Finally I will give you a conclusion to summarize the assignment and give my views. So next to read the assignment.

Part one

Define of the macroeconomic

Macroeconomics is a branch of economics, its main object of study is based on a country or a region's economy as a whole to study its performance, structure and behavior. Macroeconomists study integrated indicators, such as GDP, unemployment rates, price indices, in order to understand the function of the entire economy. Macroeconomists development model to explain national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance, the relationship between factors.Although macroeconomic is a vast field of study, there are two areas is symbolic of interdisciplinary research, trying to understand the national income (the business cycle) of the causes and consequences of short-term fluctuations, and trying to understand the determinants of long-term economic growth (national The increase in revenue). AD=C+G+I+X-M

Macroeconomic including 3 parts to explain the economic,that are Macroeconomic theory, macroeconomic policy, macro-econometric model. Today the essay will talk about the macro-econometric model about the AD=C+I+G+X-M. The model of AD means Aggregate Demand that is the total spending on goods and services made within the country. The AD=C+I+G+X-M there are explain the model. C is the total consumer expenditure

I is the Business investments
G means Government expenditure
X is the exports expenditure
M is the Imports expenditure
Keynesian models predict a country's output and income decreases, when unplanned investments. (Inventory accumulation would correspond oversupply of products, national income and product accounts, it is considered a purchase by its producer). Therefore, only counted as investment plans or intentions or desired part (IP) aggregate demand. (So, I do not include consumption of inventory levels in the run or 'investment'.) Output and interest rates (a) subject to investment. Therefore, we can write it I (Y, I). Investment relationship has a positive and negative output relationship with interest rates. For example, rising interest rates will result in a decline in aggregate demand. Part of the cost of borrowing interest costs, corporate and household sectors will cut spending. This makes the aggregate demand curve to the left. This reduces the equilibrium GDP below potential GDP. Many enterprises have production decline, they began layoffs and rising unemployment. Decline in demand,...
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