The science of macroeconomics

Сентябрь 11, 2022

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The science of macroeconomics

Содержание

2. Literature N.Gragory Mankiw MACROECONOMICS. 8TH EDITION, 2014. http://www.slideshare.net/RMA03/mankiw-macroeconomics-8th-edition Additional reading: Abel Bernanke. Introduction to macroeconomics. (2008).
3. Part I Introduction 1 1 The Science of Macroeconomics 2 The Data of Macroeconomics Part II
4. Part III Growth Theory: The Economy in the Very Long Run 8 Economic Growth I 9
5. WHAT MACROECONOMISTS STUDY HOW ECONOMISTS THINK
6. Macroeconomics is the part of the field which studies the forces that influence the economy as
7. Low unemployment Low and stable inflation Minimal domestic economic fluctuations Minimal international economic fluctuations High rates
8. 1. The Historical Performance of the U.S. Economy Three macroeconomic variables are especially important: GDP Real
9. Real GDP per person The Historical Performance of the U.S. Economy Periods during which real GDP
10. GDP in Kazakhstan
11. The Historical Performance of the U.S. Economy Recessions and depressions are associated with unusually high unemployment.
12. Unemployment in Kazakhstan
13. The Historical Performance of the U.S. Economy Periods of falling prices, called deflation, were almost as
14. Inflation in Kazakhstan
15. MACROECONOMICS is a science. Macroeconomists use models. Models are simplified theories that show the key relationships
16. 2 HOW ECONOMISTS THINK Price of pizza, P Quantity of pizza, Q Demand Supply Market equilibrium
17. 2 HOW ECONOMISTS THINK Price of pizza, P Quantity of pizza, Q D1 S1 (a) A
18. 2 HOW ECONOMISTS THINK Price of pizza, P Quantity of pizza, Q D1 S1 (b) A
19. USING FUNCTIONS A function is a mathematical concept that shows how one variable depends on a
20. Economists must Make assumptions and Judge whether they are reasonable for studying. 2 HOW ECONOMISTS THINK
21. The assumption that markets are normally in equilibrium is called Market – CLEARING (M-C) . The
22. Microeconomics is the study of how households and firms make decisions households choose their purchases to
23. Macroeconomics and microeconomics are inextricably linked. Although microeconomic decisions underlie macroeconomic phenomena, macroeconomic models DO NOT
24. The winner of the Nobel Prize in economics is announced every October. Many winners have been
25. S U M M A R Y Macroeconomics is the study of the economy as a
27. Скачать презентацию

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Literature
N.Gragory Mankiw MACROECONOMICS. 8TH EDITION, 2014.
http://www.slideshare.net/RMA03/mankiw-macroeconomics-8th-edition
Additional reading:
Abel Bernanke. Introduction to

macroeconomics. (2008). 6 edition.
McConnell Campbell R., Brue Stanley L.
(2008) Macroeconomics: Principles, Problems,
and Policies. 17th ed. — New York: McGraw-
Hill/Irwin, 2008. — 488 p.
Burda, M. and Wyplosz, C. (2009),
Macroeconomics (fifth edition)

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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

3. HOW THIS COURSE PROCEEDS

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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

3. HOW THIS COURSE PROCEEDS

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WHAT MACROECONOMISTS STUDY
HOW ECONOMISTS THINK

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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.

1. WHAT MACROECONOMISTS STUDY

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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.

MOST MACROECONOMISTS ARE INTERESTED IN 6 MAJOR 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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Real GDP per person
The Historical Performance of the U.S. Economy
Periods during

which real GDP falls are called
recessions if they are mild and
depressions if they are more severe.

It grows over time.
The growth is not steady.
There are some repeated periods of fall.

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GDP in Kazakhstan

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The Historical Performance of the U.S. Economy
Recessions and depressions are associated

with unusually high unemployment.

Percent
unemployed

It has no long-term trend
It varies substantially

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Unemployment in Kazakhstan

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The Historical Performance of the U.S. Economy
Periods of falling prices, called

deflation,
were almost as common as periods of rising prices.

It has no long-term trend
& varies substantially

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Inflation in Kazakhstan

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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.

2 HOW ECONOMISTS THINK

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

out

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2 HOW ECONOMISTS THINK
Price of pizza, P
Quantity of pizza, Q
Demand
Supply
Market

equilibrium

Equilibrium quantity

Equilibrium price

The Model of Supply and Demand

Exogenous
Endogenous

The demand curve is
a downward-sloping curve relating
the price of pizza to
the quantity of pizza
that consumers demand.

The supply curve is
an upward-sloping curve relating
the price of pizza to
the quantity of pizza
that pizzerias supply

Слайд 17

2 HOW ECONOMISTS THINK
Price of pizza, P
Quantity of pizza, Q
D1
S1
(a)

A Shift in Demand

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

Y ↑

Слайд 18

2 HOW ECONOMISTS THINK
Price of pizza, P
Quantity of pizza, Q
D1
S1
(b)

A Shift in Supply

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

Слайд 19

USING FUNCTIONS
A function is a mathematical concept that
shows how

one variable depends on a
set of other variables.

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

HOW ECONOMISTS THINK

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

Слайд 21

The assumption that
markets are normally in equilibrium
is called Market

– CLEARING (M-C) .
The continuous M-C is not entirely realistic.

2 HOW ECONOMISTS THINK

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

Слайд 22

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

2 HOW ECONOMISTS THINK

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

Слайд 23

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.

2. HOW ECONOMISTS THINK

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

Слайд 24

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)

NOBEL MACROECON0MICS

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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.

The science of macroeconomics

Содержание

LiteratureN.Gragory Mankiw MACROECONOMICS. 8TH EDITION, 2014.http://www.slideshare.net/RMA03/mankiw-macroeconomics-8th-edition Additional reading:Abel Bernanke. Introduction to

Part I Introduction 11 The Science of Macroeconomics2 The Data of

Part III Growth Theory: The Economy in the Very Long Run8

WHAT MACROECONOMISTS STUDYHOW ECONOMISTS THINK

Macroeconomics is the part of the field which studies the forces

Low unemploymentLow and stable inflationMinimal domestic economic fluctuationsMinimal international economic fluctuationsHigh

1. The Historical Performance of the U.S. EconomyThree macroeconomic variables are

Real GDP per personThe Historical Performance of the U.S. EconomyPeriods during

GDP in Kazakhstan

The Historical Performance of the U.S. EconomyRecessions and depressions are associated

Unemployment in Kazakhstan

The Historical Performance of the U.S. EconomyPeriods of falling prices, called

Inflation in Kazakhstan

MACROECONOMICS is a science.Macroeconomists use models. Models are simplified theories that

2 HOW ECONOMISTS THINKPrice of pizza, PQuantity of pizza, QDemand SupplyMarket

2 HOW ECONOMISTS THINKPrice of pizza, PQuantity of pizza, QD1 S1(a)

2 HOW ECONOMISTS THINKPrice of pizza, PQuantity of pizza, QD1 S1(b)

USING FUNCTIONS A function is a mathematical concept that shows how

Economists must Make assumptions andJudge whether they are reasonable for studying.2

The assumption that markets are normally in equilibrium is called Market

Microeconomics is the study of how households and firms make decisions

Macroeconomics and microeconomics are inextricably linked.Although microeconomic decisions underlie macroeconomic phenomena,

The winner of the Nobel Prize in economics is announced every

S U M M A R Y Macroeconomics is the study

Похожие презентации

Literature
N.Gragory Mankiw MACROECONOMICS. 8TH EDITION, 2014.
http://www.slideshare.net/RMA03/mankiw-macroeconomics-8th-edition
Additional reading:
Abel Bernanke. Introduction to

Part I Introduction 1
1 The Science of Macroeconomics
2 The Data of

Part III Growth Theory: The Economy in the Very Long Run
8

WHAT MACROECONOMISTS STUDY
HOW ECONOMISTS THINK

Low unemployment
Low and stable inflation
Minimal domestic economic fluctuations
Minimal international economic fluctuations
High

1. The Historical Performance of the U.S. Economy
Three macroeconomic variables are

Real GDP per person
The Historical Performance of the U.S. Economy
Periods during

The Historical Performance of the U.S. Economy
Recessions and depressions are associated

The Historical Performance of the U.S. Economy
Periods of falling prices, called

MACROECONOMICS is a science.
Macroeconomists use models.
Models are simplified theories that

2 HOW ECONOMISTS THINK
Price of pizza, P
Quantity of pizza, Q
Demand
Supply
Market

2 HOW ECONOMISTS THINK
Price of pizza, P
Quantity of pizza, Q
D1
S1
(a)

2 HOW ECONOMISTS THINK
Price of pizza, P
Quantity of pizza, Q
D1
S1
(b)

USING FUNCTIONS
A function is a mathematical concept that
shows how

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

The assumption that
markets are normally in equilibrium
is called Market

Microeconomics is the study of
how households and firms make decisions

Macroeconomics and microeconomics are inextricably linked.
Although
microeconomic decisions underlie macroeconomic phenomena,

S U M M A R Y
Macroeconomics is the study