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CHAPTER 1: INTRODUCTION TO MACROECONOMICS - Coggle Diagram
CHAPTER 1: INTRODUCTION TO MACROECONOMICS
ADAM SMITH (1776)
Economics or political economy is an enquiry into the nature and cause of wealth of nations.
Orang yang develop advantage theory about the absolute advantage international trade
MILTON FRIEDMAN (1962)
Economics is the science of how a particular society solves its economic problems.
Focus more on the money supply and demand
RICHARD LIPSEY (1990)
Economics is the study of scare resources to satisfy unlimited human wants.
WHAT IS MACROECONOMICS?
It is the study of the structure and performance of national economies and the policies that governments use in trying to affect economic performance.
Belajar sturktur economic dalam negara, prestasi ekonomi, polisi yang kerajaan guna yang boleh beri kesan kepada ekonomi
MICRO
small
-just learn about the individu demand, firm production
-individual markets and the behavior of individual decision making units such as consumers, firms, resources, owners.
MACRO
-activity economy at the aggregrate level such as total level of output, national income, unemployment, general price level.
-tengok keseluruhan permintaan dalam negara-B40,T20- do the average of the demand
MACRO OBJECTIVE
Full employment or reducing the unemployment rate
Control inflation or maintaining price
Achieving a steady rate of eco growth
Better quality of life
A balance in the balance of payment
CONCERN OF MACRO GOALS
1. OUTPUT GROWTH
Referred to as an increase in the aggregate output-total quantity of goods and services produced in an eco throughout a given period.
If the quantity of goods and service or national production keep increasing, we will get a better economy growth.
Two general areas
i. The short run fluctuation in economics performance
less then 5 years
ii. The long run economic growth.