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C8: INTRO TO MACRO - Coggle Diagram
C8: INTRO TO MACRO
DEF
study about aggregate variables: income, UE
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*DIFF. MIC & MAC
MIC
EXAMINES
individuals (consumers, supplier) to make decisions
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how rational consumer max his satisfaction, how supplier max his profit
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ANALYZE: detailed beh for household, firms or industries
MAC
EXAMINES
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eg: UE rate, general price, investment, G expenditure
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*MACRO GOAL
3. Economics growth
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how: increase the quantity in resources (land, labor, capital, entre) so that production will increase, and NI increase
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2. Price stability
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When prices remain largely stable, there is no rapid inflation or deflation
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1. full employment
all resources (land, labor, cap, entre) are fully utilize
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