0
Macroeconomics
Macroeconomics addresses the economy as a whole, instead of individual markets.
330 Questions
What is the definition of macroeconomics?
Definitions of Macroeconomics
"Macroeconomics is that part of economics which studies the overall averages and aggregates of the system." (Kenneth Boulding)
"Macroeconomics deals with the functioning of the economy as a whole." (Carl Shapiro)
The Scope of Macroeconomics
This includes the use of economic resources at the national level. Theses resources have their effect on the national income, employment, effective demand, aggregate saving, aggregate investment, price level, economic development etc. of the country. Its scope can be divided into following parts:
1. Theory of National income: Macroeconomics studies the concept of naational income , its diffferent elements, methods of measurement and social accounting.
2. Theory of Employment: Macroeconomics also studies problems relating to employment and unemployment. It studies different factors determining the level of employment, viz, effective ddemand, aggreagte supply, aggregate consumption, aggregate investment, aggregate saving, multiplier, etc.
3. Theory of money: Changes in demand for, and supply of money have considerable effect on the level of employment. Macroeconomics therefore, studies functions of money and theries relating to it. Banks and financial institutions are also studied under macroeconomics.
4. Theroy of general price level: Determination of and changes in general price level are also studied under macroeconomics. Problems concerning inflation or general rise in prices and deflation or general fall in prices are also studied under macroeconomics.
5. Theory of Economics Growth: Study of problems relating to economic growth or increase in per capita real income forms part of macroeconomics. It studies the economic growth of under developed economies. Monetary and fiscal policies of government are also studied under therein.
6. Theories of international Trade: Macroeconomics also studies trade among different countries. Theories of international trade, tariff, protection, etc., are subjects of great significance to macro economics.
Explain macroeconomics objectives from the conventional perspective?
Explain macroeconomics objectives from the conventional perspective?
a family's decision about how much income to save microeconomics or macroeconomics?
The open-economy macroeconomic model examines the determination of?
the trade balance and the exchange rate.
What are five examples of Microeconomics and Macroeconomics?
Example of microeconomics Deciding what to do with your time and money.
buying or selling on eBay.
visiting a large city .
reading about a soccer game.
behavior of household and firms.
Example of macroeconomics
technology
countries gross domestic product
land reform
market
Economy wide issues such as unemployment , inflation , and etc.
by: mark aliganga
marketing student
What are the Methodological differences between microeconomics and macroeconomics?
difference in methodology for microeconomics and macroeconomics?
Objectives of macroeconomics from Islamic perspective?
1. social justice
- based on the principle that all the exists in the Universe belongs to Allah. Man, being God's vicegerent on earth have been granted the ownership of this bounties. He must therefore use whatever is given to him as a trustee and not as an absolute owner.
- Islam insist on a powerful built-in income-redistribution mechanism; nevertheless some income inequality is allowed since it promotes individual initiative.
- social justice in Islam is rooted in Man's faith. A man of faith automatically has a duty to do justice. Income redistribution, voluntary or compulsory, is not only an economic necessity,but also a means to spiritual salvation.
- the concepts rests on its value of maximizing human happiness. In Islam, happiness not come so much from the possession of material goods but from contentment and gratitude.
2. Universal Education
- acquisition o knowledge is compulsory. Man's claim to superiority over all creations is based on this superior knowledge.
- every child, irrespective of his birth, must receive an equal opportunity to education.
- universal education must be subsidized (or free of charge) so that education is available to equalize man who are endowed differently in terms of wealth and property.
3. Optimal Rate of Economic Growth
- growth in an Islamic economy is comprehensive and include moral, spiritual and material aspects of man's life. In terms of capital formation, it include human capital and material capital.
- man is the centre of all economic activity. This consideration should influence the composition of investment because the expenditure on education is considered an investment.
4. Maximizing Employment
- economic growth make 'maximum' contribution to the creation of new employment opportunities. The objective is however not to attain full-employment at the cost of economic efficiency. Additional employment in the long run must be generated in a technically efficient fashion.
What is the difference between microeconmics and macroeconomics?
Microeconomics and macroeconomics are two major and are general fields of economics.
What should electrons do according to classical macroeconomic theory?
none of the above. or all of the above for plato!
What is nature and scope of microeconomics?
The nature and scope of microeconomics is specified to a particular economy. This means that it does not focus on too much risk as compared to macroeconomics which looks at the entire economy.
Potential growth refers to the maximum capacity an economy can grow at, it is always greater than actual growth because an economy cannot realistically function at full capacity. By full capacity i mean full employment, using all resources the most efficient way.
Technically there shouldn't be any macroeconomic problems resulting from that because actual growth is always below potential growth, but if it gets further away then it could eventually lead to a recession.
Why is it important to study macroeconomics?
It is important to study macroeconomic fluctuations because if you did not, you'd be marketing blindly and you need to understand the relationships between certain aspects of buisiness, especially production cost, supply and demand, and price. If one did not understand the culture, he or she would be marketing blindly.
Which of these would be part of macroeconomics?
the desciion of the US congress to lower the federal income tax rate
This disagreement stems from differing views on government intervention in the economy. Policy activism requires that the monetary and fiscal policy be used in such a way as to improve the economy. This type of reasoning dates back to Keynes, who believed that the economy sometimes needs government help to avoid stagnation. Policy rules require instead that the government use such things as a constant-growth-rate policy so as to accommodate economic growth, but not to attempt to stimulate it. In other words, the economy is best left to its own devices, and government intervention causes more problems than it solves.
1: growth
2: Low inflation
3: low unemployment
4: differ from country to another..
Curbing market power and macroeconomic stability?
CURBING MARKET POWER:
Actualy Government has a power to control aur balance the high competited prices in market because government throug its rules and regulations, it is very highly effective thing to maintain economical activities in and government, because every government wants to maintain their stability in economical condition. they wants that no any fluctuations held in its economy so Curbing Market Power is very highly effected thing or Tool to maintain the economical stability.
Why is an unemployment rate of zero per cent not a feasible macroeconomic goal?
There are too many people who can't work or don't want to work.
A zero unemployment rate would also mean that any new jobs would have to be filled entirely with new workers or those taken from other employment.
