推 showyulin:酷唷! 09/29 23:30
1-1 How Macroeconomics Affects Our Everyday Lives
Macroeconomics :
Definition: the study of the major economic totals, or aggregates.
The “Big Three” concepts of macroeconomics:
Unemployment Rate, Inflation and Productivity growth.
The basic task of macroeconomics is to study the cause of good or bad
performance of three concepts, why each matters to individuals, and what (if
anything) the government can do to improve the macroeconomic performance.
Unemployment Rate:
Definition: the number of persons unemployed (jobless individuals who are
actively looking for work or are on temporary layoff) divided by the total of
those employed and unemployed.
No job no income. when the unemployment rate is high, crime, mental illness,
and suicide also increase.
Inflation Rate:
Definition: the percentage rate of increase in the economy’s average level
of prices.
Inflation throws a monkey wrench into individual decision making, creating
pervasive uncertainty.
productivity Growth:
Definition: The average output produced per hour.
“productivity” is the average output per hour of work that a nation
produces in total goods and services.
The faster average productivity grows, the easier it is for each member of
society to improve his or her standard of living.
An economy, with no productivity growth, has been called the “zero-sum
society.”
1-2 Defining Macroeconomics
Differ Macroeconomics from Microeconomics
Definitions:
Macroeconomics deal with totals, or aggregates*, of the economy.
Macroeconomics deal with the different parts of the economy, such like the
explanation of the wage or salary of one type of worker in relation to
another.
*An aggregate is the total amount of an economic magnitude for the economy as
a whole.
1-3 Actual and Natural Real GDP
Definition of GDP:
Gross domestic product is the value of all currently produced goods and
services sole on the market during the particular time interval.
The relations between GDP and the “Big three” concepts:
GDP↑Unemployment Rate↓
GDP↑Inflation Rate↑
GDP↑Productivity Rate↑
Actual real GDP
Definition: the value of total output corrected for any changes in prices,
Natural real GDP
Definition: designates the level of real GDP at which the inflation rate is
constant, with no tendency to accelerate or decelerate.
As ARGDP>NRGDP, the inflation rate speeds up.
As NRGDP>ARGDP, the inflation rate slows down.
Only when actual real GDP is equal to natural real GDP is the inflation rate
constant.
Unemployment: Actual and Natural
As ARGDP>NRGDP, the unemployment rate falls.
As NRGDP>ARGDP, the unemployment rate raises.
The natural of unemployment designates the level of unemployment at which the
inflation rate is constant, with no tendency to accelerate or decelerate.
Productivity growth and real GDP
Productivity is defined as actual real GDP per hour; data on actual real GDP
are required to calculate productivity.
1-4 Macroeconomics in the Short Run and Long Run
Short Run
A period lasting from one year to five years.
Unemployed Rate and Inflation Rate.
The ups and downs are usually called “economic fluctuations” or business
cycles.
Business Cycles consist of expansions occurring at about the same time in
many economic activities, followed by similarly general recessions and
recoveries that merge into the expansion phase of the next cycle.
Peak Trough Recession Expansion
The main goal: To minimize the fluctuations in real GDP and to eliminate the
“real GDP gap.”
The Real GDP Gap, sometimes called the output gap, is the percentage
difference between actual and natural real GDP.
Long Run
One decade to several decades.
Productivity Growth or Economy Growth.
Economy Growth is the topic area macroeconomics that studies the causes of
sustained the growth in real GDP over periods of a decade or more.
Speed-Nation: A country with very fast growth in real GDP.
Ex. China and India.
Stag-Nation: A country experiences very slow growth in real GDP.
Ex. Germany, Italy, and Japan.
1-6 Macroeconomics at the Extremes
Unemployment in the Great Depression, 1929-40
Real GDP collapsed between 1929 and 1933.Unemployment Rate reach 25%.It was
most serious in the United States and Germany which led directly to Hilter’s
takeover of power and indirectly caused the World War Two.
The Germany Hyperinflation of 1922-23
A hyperinflation can defined as an inflation raging at a rate of 50% or more
per month.
The Versailles Peace Treaty, which ended World War One and required payments
of massive reparations by Germany to Britain and France. It was both the
rapid increase in the supply of money and the ever-declining demand for money
that combined to fuel the hyperinflation.
Fast and Slow Growth in Asia
Real GDP per capita in Philippines is $2,034 and in South Korea is
$1,690.Between1960 and 2008, real GDP per capita grew at 5.7 percent per year
in South Korea compared to only 1.4 percent in the Philippines. In 2008, real
GDP values of only $4,195 for the Philippines and $26,894 for South Korea.
1-7 Taming Business Cycles: Stabilization Policy
A Stabilization Policy is any policy that seeks to influence the level of
aggregate demand.
Target Variables are aggregates whose values society cares about. It contains
the three concepts. Policy Instruments, which are elements that government
policymaker can manipulate directly to influence target variables, can be
used in an attempt to achieve needed changes and it fall into three broad
categories: Monetary Policy, which tries to influence target variables by
changing the money supply or interest rate or both, Fiscal Policy, which
tries to influence target variables by manipulating government expenditures
and tax rates, and Miscellaneous Group, which includes policies to equip
workers with skills they need to qualify for jobs.
1-8 The “Internationalization” of Macroeconomics
A Closed Economy has no trade in goods, services, or financial assets with
any other nation, such as the U.S. in the 1940s and 1950s. However, the U.S.
has increasingly become an Open Economy. An Open Economy exports goods and
services to other nations, imports from them, and has financial flows to and
from foreign nations. In 1980-90 and 2001-08, the depressing effect of
government deficits on private domestic investment was partly offset by
capital inflows from abroad. There are additional impacts of monetary and
fiscal policy to consider.
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※ 編輯: bewritten 來自: 220.133.102.221 (09/29 23:11)
※ 編輯: bewritten 來自: 220.133.102.221 (09/29 23:12)