chapter 15 introduction to macro

chapter 15 introduction to macro - EC1101E INTRODUCTION TO...

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Unformatted text preview: EC1101E INTRODUCTION TO ECONOMIC ANALYSIS Macroeconomics Introduction 2 Dr V. Seevaratnam E-mail Address: ecsvs@nus.edu.sg Consultation Hours: Announced on IVLE and other mutually- convenient times by appointment (the wonders of e-mail!) Introduction 3 FAQ 1. Lectures, slides and readings 2. Tutorials & tutorial schedule 3. Final exam 4. A-level economics dispelling myths Introduction 4 What Is Macroeconomics? Macroeconomics is the branch of economics that deals with a nations economy as a whole. Micro Macro Introduction 5 Aggregation The adding up of the individual economic variables to obtain economy-wide totals Usefulness? Lack of usefulness? Introduction 6 What Will Your World Be Like? Will tomorrows world be more prosperous than todays? Will jobs be plentiful? Will the cost of living be stable? Introduction 7 The Major Macroeconomic Issues Economic growth Productivity Recessions & expansions Unemployment Inflation Economic interdependence among nations Living standards: the degree to which people have access to goods and services that make their lives easier, healthier, safer and more enjoyable Introduction 8 Origins of Macroeconomics Economists began to study economic growth, inflation and international payments during the 1750s. Modern macroeconomics dates from the Great Depression, a decade (1929-1939) of high unemployment and stagnant production throughout the world economy. The General Theory of Employment, Interest, and Money by John Maynard Keynes began the subject. FYR Introduction 9 How Far Have We Come? 1973: 2% of Singapores households had a washing-machine 2003: over 90% 1973: 3% of Singapores households had an air- conditioner 2003: 72% 1998: 1 in 10 had a PC 2003: 7 in 10 FYR Introduction 10 FYR Introduction 11 Productivity In 2004, the average U.S. worker could produce six times more than in 1900. Average labour productivity worker employed per output employed people of Number output Total = FYR Introduction 12 Economic Interdependence The international flows create political and economic issues a) the impact of trade on jobs b) trade imbalances (when exports & imports differ significantly) Introduction 13 Macroeconomic Policies Monetary Policy Fiscal Policy Structural Policy Introduction 14 Positive versus Normative Positive Analysis of Macroeconomic Policy Addresses the economic consequences of a particular event or policy, not whether those consequences are desirable Normative Analysis of Macroeconomic Policy Addresses the question of whether a policy...
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This note was uploaded on 02/12/2012 for the course ECON EC1101 taught by Professor Ms during the Spring '08 term at National University of Singapore.

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chapter 15 introduction to macro - EC1101E INTRODUCTION TO...

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