TAILIEUCHUNG - Ebook Economic (6th edition): Part 2

(BQ) Part 2 book "Economic" has contents: The national economy, the roots of modern macroeconomics, fiscal and monetary policy, the relationship between the money and goods markets, money and interest rates, international trade, the balance of payments and exchange rates, global and regional interdependence, economic problems of developing countries. | 10/27/05 16:50 Page 365 Part D: Foundations of Macroeconomics 13 The National Economy 367 14 Macroeconomic Issues and Analysis: an Overview 395 Why do economies sometimes grow rapidly, while at other times they suffer from recession? Why, if people want to work, do they sometimes find themselves unemployed? Why do economies experience inflation (rising prices), and does it matter if they do? Why do exchange rates change and what will be the impact of such changes on imports and exports? These macroeconomic issues affect all countries, and economists are called on to try to find explanations and solutions. In the next three chapters we will be looking at these issues and giving you a preliminary insight into the causes of these problems and what governments can do to tackle them. 10/27/05 16:50 Page 366 10/27/05 16:50 Page 367 Chapter 13 The National Economy We turn now to macroeconomics. This will be the subject for the second half of the book. As we have already seen, microeconomics focuses on individual markets. It studies the demand for and supply of oranges, videos, petrol and haircuts; of bricklayers, doctors, office accommodation and computers. It examines the choices people make between goods, and what determines their relative prices and the relative quantities produced. In macroeconomics we take a much loftier view. We examine the economy as a whole. We still examine demand and supply, but now it is the total level of spending in the economy and the total level of production. In other words, we examine aggregate demand and aggregate supply. We still examine output, employment and prices, but now it is national output and its rate of growth, national employment and unemployment, and the general level of prices and their rate of increase (. the rate of inflation). In this chapter, we identify the major macroeconomic objectives and have a preliminary look at how they are related. Then we focus on national .

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