TAILIEUCHUNG - Ebook Essentials of economics (7th edition): Part 2

(BQ) Part 2 book "Essentials of economics" has contents: Aggregate demand and the national economy, aggregate supply and growth, banking, money and interest rates, inflation and unemployment, macroeconomic policy, globalisation and international trade, balance of payments and exchange rates. | Part c Macroeconomics 8 Aggregate demand and the national economy 200 9 Aggregate supply and growth 231 10 Banking, money and interest rates 260 11 Inflation and unemployment 292 12 Macroeconomic policy 327 chapter 8 aggregate demand and the national economy We turn now to macroeconomics. This will be the subject for this third part of the book and most of the final part. In particular, we will be examining five key topics. The first is national output. What determines the size of national output? What causes it to grow? Why do growth rates fluctuate? Why do economies sometimes surge ahead and at other times languish in recession? The second is employment and unemployment. What causes unemployment? If people who are unemployed want jobs, and if consumers want more goods and services, then why does our economy fail to provide a job for everyone who wants one? The third is the issue of inflation. Why is it that the general level of prices always seems to rise, and only rarely fall? Why is inflation a problem? But why, if prices do fall, might that be a bad thing too? Why do countries’ central banks, such as the Bank of England, set targets for the rate of inflation? And why is that target positive (. 2 per cent) rather than zero? The fourth issue is the financial system. We look at the role that financial institutions play in modern economies. In doing so, we analyse the financial crisis of the late 2000s, the initial responses of policy makers to limit the adverse impact on economies and the subsequent responses to try to prevent a similar crisis reoccurring. The final topic, which is the subject of the final part of the book, concerns a country’s economic relationships with other countries. We look at international trade and investment and at the flows of foreign currencies around the world. In this chapter, after a preliminary look at the range of macroeconomic issues, we then focus on the first of these issues: national output. In doing this .

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