LECTURE%20NOTES%208 - University of Modern Sciences & Arts...

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University of Modern Sciences & Arts (MSA) Objectives of macroeconomic policy Dr. Heba Helmy ECO-101 Lecture notes 8 ECONOMICS 101 CHAPTER 20 OVERVIEW OF MACROECONOMICS AS EXPLAINED EARLIER WE SAID THAT MACROECONOMICS IS THE STUDY OF THE BEHAVIOR OF THE ECONOMY AS A WHOLE. IT EXAMINES THE OVERALL LEVEL OF A NATION'S OUTPUT, EMPLOYMENT AND PRICES. THIS IS CONTRASTED TO MICROECONOMICS WHICH STUDIES INDIDVIDUAL PRICES, QUANTITIES AND MARKETS. OBJECTIVES AND INSTRUMENTS OF MACROECONOMIC POLICY : NOWADAYS, ALL NATIONS USE MACROECONOMIC POLICY TO FULFILL CERTAIN OBJECTIVES AND USE CERTAIN INSTRUMENTS TO FULFILL THESE OBJECTIVES. WHAT ARE THE OBJECTIVES OF MACROECONOMIC POLICY? 1) A HIGH LEVEL OF OUTPUT AND RAPID ECONOMIC GROWTH A MAJOR ECONOMIC OBJECTIVE IS TO PRODUCE MORE OF EVERYTHING FOR THE POPULATION; THAT IS, MORE FOOD, SHELTER, CARS, EDUCATION, ETC. TO MEASURE TOTAL OUTPUT OF AN ECONOMY WE USE A MEASURE CALLED THE GROSS DOMESTIC PRODUCT OR GDP. GDP
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LECTURE%20NOTES%208 - University of Modern Sciences & Arts...

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