Macroeconomic

Macroeconomics

Macroeconomics specific content first learned GNP accounting and IS, LM curve expenditure approach. You also learned fiscal policy and monetary policy as well as the use of both, such as in a recession, expansionary fiscal and monetary policies. On fiscal policy, the main measures of tax cuts and increased government spending. Tax allows companies and individuals to increase after tax income, thereby stimulating enterprises to expand investment and personal consumption increased; expansion of government spending, primarily to expand the government's purchase or order, to increase funding for public works. In monetary policy, the main measures to expand the money supply and lower interest rates to stimulate investment, thus increasing aggregate demand.

Definition:

Macroeconomics in the entire national economy as a study object, decided to study changes in the economy and the respective total, to address unemployment, inflation, economic fluctuations, balance of payments problems and achieve long-term stable development.

In macroeconomics, first learning the accounting of GDP by expenditure approach. GDP is a country in a given period using the market value of the production of all factors of production of the final product. Using the formula GDP = C + I + G + (X-M)

Then we learn the IS, LM curve. On the coordinates in, IS is downward sloping, the horizontal axis represents the income; the vertical axis represents interest rates. At any point on this line are that investment equals savings, that product market is balanced. Lm is upward sloping, the horizontal axis represents the income is, the vertical axis represents interest rate at any point on this line represents the demand and supply of money is equal, that the money market is balanced. The IS, LM curve in the same coordinate where they intersect the point, that the product market and the money market at the same time balancing.

Then study the fiscal and monetary policies. A popular term...