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C8: INTRO TO MACRO - Coggle Diagram
C8: INTRO TO MACRO
DEF
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such as: income, price, money,
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DIFF MICRO vs MACRO
MICRO
EXAMINES:
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how price, output determined
how rational consumer max satisfaction, how seller max profit
GOAL: efficiency, fully utilize
ANALYZE: Detailed behaviour of household, firm & industries
MACRO
EXAMINES:
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var relavant for entire econs: general price, unemployment (UE)
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GOALS: high national income, full employment (low UE), stable general price, economic growth
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MACRO GOALS
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- Competetive international trade
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- fair distribution of income
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subsidies to poor, tax to rich group
all sources (lsnd, labor, cap, entrep) are fully utilize
measured by UE rate, lower UE rate, better full employment.
- satisfied in Balance of payments (BoP)
balance means X=M. deficit if X < M, surplus if X>M
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