PB202MACROECONOMICS

CHAPTER 1

INTRODUCTION TO MACROECONOMIC

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AGGREGATE SUPPLY

- What is macroeconomics? -Macroeconomics versus microeconomics-Macroeconomic goal

- What is aggregate demand?-the curve

-Price stability-Economic growth-Full employment- Distribution of income

Fiscal policy (tax & government spending) and Monetary Policy (supply of money)

-Definition-- the curve

AGGREGATE DEMAND

MACROECONOMIC GOAL

GOVERNMENT POLICIES AND TOOLS

MACROECONOMICS IN GENERAL

Chapter Summary

This illustration is a part of ”Building Plan”. See the whole presentation at slideshop.com/value-chain

Prepared by: Azlina bt Azmi

Session of December 2010

What is macroeconomics?

The branch of economics that studies decision making for the economy as a whole (inflation, unemployment, economy growth, money supply, national incomes)

Macroeconomics vs Microeconomics

Microeconomics Macroeconomics

Studies individual income Studies national income

Analyzes demand for and supply of labor

Analyzes total employment in the economy

Deals with households’ and firms’ decisions

Deals with aggregate decisions

Analyzes demand and supply of goods

Analyzes aggregate demand and aggregate supply

Inflation

Government Policies

In order to stimulate economic growth