MACROECONOMICS
What is Macroeconomics?Macroeconomics is an aspect of economic study that focuses on the aggregate economic system. Macroeconomics analyzes the economy at a national or even global level and is concerned with the economy as a whole.The Economist's Dictionary of Economics defines Macroeconomics as "The study of whole economic systems aggregating over the functioning of individual economic units. It is primarily concerned with variables which follow systematic and predictable paths of behaviour and can be analysed independently of the decisions of the many agents who determine their level. More specifically, it is a study of national economies and the determination of national income."Generally, macroeconomics focuses on two factors that influence the economy in the short run, and to impact on long term economic growth.
Short-term macroeconomics is answer the two questions:
1. What causes output and employment to fluctuate?2. How should monetary and fiscal policy makers respond to these fluctuations?Whether in the long-run issues answer the followings:1.why do long-term national growth rates differ?2.what are the costs of long-term growth?The aim of macroeconomics is to analyze why households, firms and markets are affected by economical changes.
HouseholdAll those people living under one roof or occupying a separate housing unit, having either direct access to the outside (or to a public area) are considered as a household.There are two basic things that households do, demand and supply .--Demand for goods and services--Supply labor,capital, land and enterpreneurshipHousehold income is all income that is used for household expenses.
FirmsFirms is an organization which engaged in the trade of goods or services with production/service tools, located or identifiable in some destinations who transform raw materials into goods and services.
What is Macroeconomics?Macroeconomics is an aspect of economic study that focuses on the aggregate economic system. Macroeconomics analyzes the economy at a national or even global level and is concerned with the economy as a whole.The Economist's Dictionary of Economics defines Macroeconomics as "The study of whole economic systems aggregating over the functioning of individual economic units. It is primarily concerned with variables which follow systematic and predictable paths of behaviour and can be analysed independently of the decisions of the many agents who determine their level. More specifically, it is a study of national economies and the determination of national income."Generally, macroeconomics focuses on two factors that influence the economy in the short run, and to impact on long term economic growth.
Short-term macroeconomics is answer the two questions:
1. What causes output and employment to fluctuate?2. How should monetary and fiscal policy makers respond to these fluctuations?Whether in the long-run issues answer the followings:1.why do long-term national growth rates differ?2.what are the costs of long-term growth?The aim of macroeconomics is to analyze why households, firms and markets are affected by economical changes.
HouseholdAll those people living under one roof or occupying a separate housing unit, having either direct access to the outside (or to a public area) are considered as a household.There are two basic things that households do, demand and supply .--Demand for goods and services--Supply labor,capital, land and enterpreneurshipHousehold income is all income that is used for household expenses.
FirmsFirms is an organization which engaged in the trade of goods or services with production/service tools, located or identifiable in some destinations who transform raw materials into goods and services.