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C8 INTRO TO MACROECONOMICS - Coggle Diagram
C8 INTRO TO MACROECONOMICS
DEFINITION :
study about agreegate virables : income, UE, money, price
examines econs as a whole system
field of eco
**DIFFERENT, MIC & MAC :
MAC
EXAMINES:
sum of sets of mic derive aggregate var.
eg: num of workers becomes national employment
eg: UE rate, general price, investment, G expenditure
GOALS
:
low UE rate
satible price level
full employment
low inflation rate
high national income
ANALYZE
: economics activities as whole system
MIC
EXAMINES
how price in market determined
how rational consumer max his satisfaction, how supplier max his profit
individual ( consumers , supplier ) to make decisions
**GOALS
effeciency
optimisation / fully utilze
ANALYZE: Detail behaviour ( household, firms, industries)
MAC GOALS
4.competitive
indicated by currency exchange and X M (export,import)
open economy (active in international trade) is better than closed economy (less X & M)
**1. full employment
all resources (land,labour,capital) are fully utilize
usually indicated UE rate
economic growth
indicated by national income
how: increase the quantity in resources(land,labor,capital) so that production will increase, and NI increase
fair income distribution
indicated by gaps low income and higher income
goverment give subsidies to low income(poor), G imply tax to higher income(rich). This to balance the distribution of income between nation
price stability
indicated by Consumer Price Index (CPI)
when price remain largerly stable, there is no rapid inflation or deflation
**6. balance of payment
indicated by X and M (export & import)
balance when export is equal to import (X=M)
BoP deficit when X<M, BoP surplus when X>M