🗊Презентация The science of macroeconomics

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THE SCIENCE OF MACROECONOMICS
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THE SCIENCE OF MACROECONOMICS

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Literature N.Gragory Mankiw MACROECONOMICS. 8TH EDITION, 2014. http://www.slideshare.net/RMA03/mankiw-macroeconomics-8th-edition
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Literature N.Gragory Mankiw MACROECONOMICS. 8TH EDITION, 2014. http://www.slideshare.net/RMA03/mankiw-macroeconomics-8th-edition

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3. HOW THIS COURSE PROCEEDS Part I Introduction 1 1 The Science of Macroeconomics 2 The Data of Macroeconomics Part II Classical Theory: The Economy in the Long Run 3 National Income 4 The Monetary System 5 Inflation 6 The Open Economy 7 Unemployment
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3. HOW THIS COURSE PROCEEDS Part I Introduction 1 1 The Science of Macroeconomics 2 The Data of Macroeconomics Part II Classical Theory: The Economy in the Long Run 3 National Income 4 The Monetary System 5 Inflation 6 The Open Economy 7 Unemployment

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3. HOW THIS COURSE PROCEEDS Part III Growth Theory: The Economy in the Very Long Run 8 Economic Growth I 9 Economic Growth II Part IV Business Cycle Theory: The Economy in the Short Run 10 Introduction to Economic Fluctuations 11 Aggregate Demand I 12 Aggregate Demand II 13 The Open Economy Revisited 14 Aggregate Supply and Tradeoff Between Inflation and Unemployment
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3. HOW THIS COURSE PROCEEDS Part III Growth Theory: The Economy in the Very Long Run 8 Economic Growth I 9 Economic Growth II Part IV Business Cycle Theory: The Economy in the Short Run 10 Introduction to Economic Fluctuations 11 Aggregate Demand I 12 Aggregate Demand II 13 The Open Economy Revisited 14 Aggregate Supply and Tradeoff Between Inflation and Unemployment

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WHAT MACROECONOMISTS STUDY WHAT MACROECONOMISTS STUDY HOW ECONOMISTS THINK
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WHAT MACROECONOMISTS STUDY WHAT MACROECONOMISTS STUDY HOW ECONOMISTS THINK

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1. WHAT MACROECONOMISTS STUDY Macroeconomics is the part of the field which studies the forces that influence the economy as a whole. Macroeconomists collect data, attempt to formulate general theories to explain these data, use the data to observe that economies differ across countries. Their knowledge is useful both for explaining economic events and for formulating economic policy.
Описание слайда:
1. WHAT MACROECONOMISTS STUDY Macroeconomics is the part of the field which studies the forces that influence the economy as a whole. Macroeconomists collect data, attempt to formulate general theories to explain these data, use the data to observe that economies differ across countries. Their knowledge is useful both for explaining economic events and for formulating economic policy.

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MOST MACROECONOMISTS ARE INTERESTED IN 6 MAJOR GOALS: Low unemployment Low and stable inflation Minimal domestic economic fluctuations Minimal international economic fluctuations High rates of economic growth Wise economic policy, which consists of governmental and non-governmental efforts to influence the other five goals.
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MOST MACROECONOMISTS ARE INTERESTED IN 6 MAJOR GOALS: Low unemployment Low and stable inflation Minimal domestic economic fluctuations Minimal international economic fluctuations High rates of economic growth Wise economic policy, which consists of governmental and non-governmental efforts to influence the other five goals.

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1. The Historical Performance of the U.S. Economy Three macroeconomic variables are especially important: GDP Real GDP (real gross domestic product) measures the total income of everyone in the economy (adjusted for the level of prices), real GDP per person measures the income of the average person in the economy. The inflation rate measures how fast prices are rising. The unemployment rate measures the fraction of the labor force that is out of work. Macroeconomists study how these variables are determined, why they change over time, and how they interact with one another.
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1. The Historical Performance of the U.S. Economy Three macroeconomic variables are especially important: GDP Real GDP (real gross domestic product) measures the total income of everyone in the economy (adjusted for the level of prices), real GDP per person measures the income of the average person in the economy. The inflation rate measures how fast prices are rising. The unemployment rate measures the fraction of the labor force that is out of work. Macroeconomists study how these variables are determined, why they change over time, and how they interact with one another.

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The Historical Performance of the U.S. Economy
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The Historical Performance of the U.S. Economy

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GDP in Kazakhstan
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GDP in Kazakhstan

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The Historical Performance of the U.S. Economy
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The Historical Performance of the U.S. Economy

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Unemployment in Kazakhstan
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Unemployment in Kazakhstan

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The Historical Performance of the U.S. Economy
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The Historical Performance of the U.S. Economy

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Inflation in Kazakhstan
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Inflation in Kazakhstan

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2 HOW ECONOMISTS THINK MACROECONOMICS is a science. Macroeconomists use models. Models are simplified theories that show the key relationships among economic variables. The exogenous variables are those that come from outside the model. The endogenous variables are those that the model explains. The model shows how changes in the exogenous variables affect the endogenous variables.
Описание слайда:
2 HOW ECONOMISTS THINK MACROECONOMICS is a science. Macroeconomists use models. Models are simplified theories that show the key relationships among economic variables. The exogenous variables are those that come from outside the model. The endogenous variables are those that the model explains. The model shows how changes in the exogenous variables affect the endogenous variables.

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2 HOW ECONOMISTS THINK
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2 HOW ECONOMISTS THINK

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2 HOW ECONOMISTS THINK Theory as Model Building The Use of Multiple Models Prices: Flexible Versus sticky Microeconomic Thinking and Macroeconomic Model
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2 HOW ECONOMISTS THINK Theory as Model Building The Use of Multiple Models Prices: Flexible Versus sticky Microeconomic Thinking and Macroeconomic Model

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2 HOW ECONOMISTS THINK Theory as Model Building The Use of Multiple Models Prices: Flexible Versus sticky Microeconomic Thinking and Macroeconomic Model
Описание слайда:
2 HOW ECONOMISTS THINK Theory as Model Building The Use of Multiple Models Prices: Flexible Versus sticky Microeconomic Thinking and Macroeconomic Model

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USING FUNCTIONS Example the Q of pizza demanded ~ on P of pizza and on Y. Functional notation expresses the general idea: = D(P, Y ). = 60 − 10P + 2Y. D(P, Y ) = 60 − 10P + 2Y. When we have enough information, it is possible to indicate the numerical relationship. If P=2, Y=10 => Q=60
Описание слайда:
USING FUNCTIONS Example the Q of pizza demanded ~ on P of pizza and on Y. Functional notation expresses the general idea: = D(P, Y ). = 60 − 10P + 2Y. D(P, Y ) = 60 − 10P + 2Y. When we have enough information, it is possible to indicate the numerical relationship. If P=2, Y=10 => Q=60

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2 HOW ECONOMISTS THINK Economists must Make assumptions and Judge whether they are reasonable for studying.
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2 HOW ECONOMISTS THINK Economists must Make assumptions and Judge whether they are reasonable for studying.

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2 HOW ECONOMISTS THINK The assumption that markets are normally in equilibrium is called Market – CLEARING (M-C) . The continuous M-C is not entirely realistic.
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2 HOW ECONOMISTS THINK The assumption that markets are normally in equilibrium is called Market – CLEARING (M-C) . The continuous M-C is not entirely realistic.

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2 HOW ECONOMISTS THINK Microeconomics is the study of how households and firms make decisions households choose their purchases to maximize their level of satisfaction, which economists call utility firms make production decisions to maximize their profits. how these decision makers interact in the marketplace. A central principle is that households and firms optimize — they do the best they can for themselves
Описание слайда:
2 HOW ECONOMISTS THINK Microeconomics is the study of how households and firms make decisions households choose their purchases to maximize their level of satisfaction, which economists call utility firms make production decisions to maximize their profits. how these decision makers interact in the marketplace. A central principle is that households and firms optimize — they do the best they can for themselves

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2. HOW ECONOMISTS THINK Macroeconomics and microeconomics are inextricably linked. Although microeconomic decisions underlie macroeconomic phenomena, macroeconomic models DO NOT NECESSARILY focus on the optimizing behavior of households and firms.
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2. HOW ECONOMISTS THINK Macroeconomics and microeconomics are inextricably linked. Although microeconomic decisions underlie macroeconomic phenomena, macroeconomic models DO NOT NECESSARILY focus on the optimizing behavior of households and firms.

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NOBEL MACROECON0MICS The winner of the Nobel Prize in economics is announced every October. Many winners have been macroeconomists whose work we study. Here are a few of them: Milton Friedman (Nobel 1976) James Tobin (Nobel 1981) Robert Solow (Nobel 1987) Robert Lucas (Nobel 1995) George Akerlof (Nobel 2001) Edmund Phelps (Nobel 2006)
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NOBEL MACROECON0MICS The winner of the Nobel Prize in economics is announced every October. Many winners have been macroeconomists whose work we study. Here are a few of them: Milton Friedman (Nobel 1976) James Tobin (Nobel 1981) Robert Solow (Nobel 1987) Robert Lucas (Nobel 1995) George Akerlof (Nobel 2001) Edmund Phelps (Nobel 2006)

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S U M M A R Y Macroeconomics is the study of the economy as a whole. Economists use models — theories that simplify reality in order to reveal how exogenous variables influence endogenous variables. A key feature of a macroeconomic model is whether it assumes that prices are flexible or sticky. Microeconomics is the study of how firms and individuals make decisions and how these decision makers interact.
Описание слайда:
S U M M A R Y Macroeconomics is the study of the economy as a whole. Economists use models — theories that simplify reality in order to reveal how exogenous variables influence endogenous variables. A key feature of a macroeconomic model is whether it assumes that prices are flexible or sticky. Microeconomics is the study of how firms and individuals make decisions and how these decision makers interact.

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The science of macroeconomics, слайд №26
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