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Macroeconomic - Chapter 1 Simple Note

Chapter 1

Concerns of Macroeconomic

·         Business Cycle顶峰低谷交替

·         Aggregate Output产出

·         Expansion or boom顶峰

·         Contraction, recession, or slump低谷

 

Inflation

An increase in the overall price level. 通货膨胀

Deflation

A decrease in the overall price level. 通货紧缩

Component of Macro Economy

 

*Role of each components

v  Goods and services market

v  Labor Markets

v  Money Markets

·         Households

ü  Provide demand, labor

ü  Purchasing, consuming

ü  Act as consumer, taxpayer, worker

·         Firms

ü  Fulfill Demand, create income

ü  Producing, Processing

ü  Act as a producer, taxpayer

·         Government

ü  Purchasing consuming, constructing

ü  Act as a manager, tax collector

ü  Fiscal Policy and Monetary Policy

·         The rest

 

Fiscal Policy财政政策

It’s all about:

·         Total social Product

·         National Income distribution

·         Tax policy

·         Fiscal investment policy

·         Expenditure policies

·         Budgetary Revenue policy and so on

Monetary Policy货币政策

·         Stabilize prices

·         promote economic growth

·         achieve full employment

·         balance the balance of payments

Fund sourcing

·         Treasury Bonds, Notes or bills

·         Dividends

·         Corporate bonds

·         National debt

 

 

 


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