Macroeconomics

Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other policy during a given period (gross national product or GNP) minus depreciation. Depreciation (also known as consumption of fixed capital) measures the amount of GNP that must be spent on new capital goods to maintain the existing physical capital stock.

NNP is the amount of goods in a given year which can be consumed without reducing future consumption. Setting part of NNP aside for investment permits capital stock growth (see economic growth and capital formation), and greater future consumption.

Inflation is worse than recession. Recessions end. Inflation is the most powerful force in the world and it keeps on keeping on. Inflation in the U.S., for example, has decreased the value of the dollar 84% since the beginning of 1969. The average rate of inflation in the U.S. is 4.1% on average for the past 30 years; at this rate the dollar loses half its purchasing power every 17 years. For detailed inflation data, see www.bls.gov. The data there includes an inflation chart sine 1913. Since the mid 1970s, the slope of the chart is up on an angle of approximately 45 degrees.

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John Maynard Keynes

economyic example

The Federal Reserve, or "Fed", can use monetary policy to influence the economy through the use of three tools, the most widely used being the use of open market operations, in which it buys or sells government securities. The more they buy from banks, the more money the banks will have, and the more loans they will be able to give out. If they sell securities to banks, the banks will have less money, and be less able to loan money, which would slow economic activity and decrease inflation in that now businesses and individuals will have less to spend, which would cause a downward shift in demand for goods and services. The Fed also uses its power to change what is known as the discount rate, or the rate of interest on money that banks have to pay back after borrowing from the Fed. This isn't used often, but can influence the bank's ability to loan money to businesses and individuals, which would affect economic activity and growth. The third tool it uses is known as the Reserve Requirement, and is a powerful tool at the Fed's disposal. This is the percentage of money banks are required to keep in reserve from deposits by account holders. The higher it is, the less money is available for lending, and the lower it is, the more money is available for lending. Monetary Policy, in a nutshell, is the use of tools by the Fed to influence the money supply to the public, and either encourage or discourage economic growth of the country as a whole.

Fiscal Policy is completely under governmental control, and uses two methods, taxation and government spending, to encourage healthy economic growth. Government spending lets more money flow through the system, and encourages growth, just as taxation does the opposite. It is based off of the economic theories of John Maynard Keynes, who first proposed that the economy hinged on the spending of individuals, businesses, and, most importantly to fiscal policy, government. The government uses its spending power to influence economic growth.

good luck in economics, by the way :P

Macro economics as a subject studies the domains of social institutions / state in terms of resources utility and levels of income by the dual forces of supply and demand both in the micro and Marco level of its operation.However in methodology it is science as it analyses by universal parameters to determine the various levels both as discrete and probability units.

1. Economic Growth

2. Economic Development

3. Price Stability

4. Full Employment

5. External Equilibrium

Cheers..

come again???

When approaching investment decision making there are two common approaches that one can take. First there is the top-down approach which takes into account data about the macroeconomic environment, business cycles, and industry trends. Second there is the bottom-up approach that focuses more on individual companies and their relative merits when considering investment.

Both approaches can be considered equally valid; they just come at the problem of allocating investment capital from different directions. The main difference between these methodologies is the weight given to economic factors and the particular industry of a given stock.

First, let’s consider the top-down approach. Those who follow this discipline generally believe that the economy and the market, as well as the particular industry in question carry a lot of weight on the importance of investment decisions. They may use tools such as leading economic indicators, charts of past business cycles, industry reports and the like to decide which industry would be a good bet given all the relative data before deciding on which particular firms within that industry to invest in.

Those who follow a more bottom-up approach to investment decision making tend to be in search of particular characteristics in the companies or stocks they are evaluating. They may start by looking for companies with a certain P/E ratio or use some other criteria to flag potential investments. Then they analyze the fundamentals of that company or charts for that particular stock in order to aid in their decision. These bottom-up investors believe that they can find stocks that are undervalued regardless of what is happening in any particular industry or the wider world of markets and economies.

Either approach can be tackled by fundamental analysts or technical analysts. Also, as I’ve stated, neither is right or wrong. But the next time you hear an analyst talking about a top-down or bottom-up approach to portfolio management you’ll have some idea what they mean.

It was important because the taxes would protect the industries against the competition in England. This allowed the newly formed industries have a better chance and it allowed America to become an industrial nation.

Which of the following is true about government balance in the macroeconomic balance equation?

a. Government balance can occur in the presence with inflation.

b. Government balance is the difference between taxes (revenues) and expenditures.

c. In transition economies, pressures on T and G resulted in a budget deficit.

d. b and c are correct.

e. a, b, and c are correct.

achievement can be made by taking bold steps

It creates jobs there, plus the skills that go with the jobs.

These taxes are part of indirect taxes , though taxes are imposed on individuals and paid by individuals it is a macro concept which is dealt by the govt.... hence it is macro economics in charge of these taxes...... however indirect taxes are managed by the state govt...

They do, but inflation will result, the monetarist view of the natural rate is that it is the non accelerating inflation rate of unemployment (NAIRU) to move below this will result in high inflation and is therefore not worth the benefit of the reduced unemployment.

"Macroeconomics" by Michael Parkin offers a comprehensive overview of key concepts in the field, including aggregate demand and supply, economic growth, inflation, and unemployment. The text emphasizes the importance of government policy and international trade in influencing national economies. Parkin uses real-world examples and data to illustrate how macroeconomic theories apply to current events. Overall, the book serves as a valuable resource for understanding the complexities of macroeconomic interactions and their impact on society.

Emerging macroeconomics emphasizes the role of aggregate demand and systemic failures in financial markets as key causes of the Great Depression. It highlights how the collapse of consumer confidence, coupled with restrictive monetary policies and bank failures, led to a drastic decline in spending and investment. Additionally, it points to global economic interconnectedness, where international trade imbalances and protectionist measures exacerbated the downturn. This framework underscores the importance of government intervention and policy responses to stabilize the economy during such crises.

Changes in stock prices can reflect investor sentiment about macroeconomic stability; rising stock prices often indicate confidence in economic growth, while falling prices may signal concerns about recessions or instability. For oil prices, macroeconomic stability influences demand; strong economic growth typically boosts demand for oil, driving prices higher, while economic downturns can lead to decreased demand and lower prices. Additionally, geopolitical stability and supply chain factors play significant roles in oil price fluctuations, further linking them to the broader economic environment. Thus, the relationship between stock prices, macroeconomic stability, and oil prices is interdependent and complex.