A90 Ch10 Overview of Macroeconomics Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Ch10 Overview of Macroeconomics
490 12-2 10.1 WHAT IS MACROECONOMICS ●Microeconomics Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets. ●Macroeconomics Macroeconomics is the study of the economy as a whole. Its goal is to explain the economic changes that affect many households,firms,and markets. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 12-2 10.1 WHAT IS MACROECONOMICS • Microeconomics – Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets. • Macroeconomics – Macroeconomics is the study of the economy as a whole. – Its goal is to explain the economic changes that affect many households, firms, and markets
12-3 Important issues in macroeconomics Why does the cost of living keep rising? Why are millions of people unemployed,even when the economy is booming? Why are there recessions? Can the government do anything to combat recessions?Should it? Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 12-3 Important issues in macroeconomics • Why does the cost of living keep rising? • Why are millions of people unemployed, even when the economy is booming? • Why are there recessions? Can the government do anything to combat recessions? Should it?
190 12-4 Important issues in macroeconomics What is the government budget deficit?How does it affect the economy? Why does the U.S.have such a huge trade deficit? Why are so many countries poor? What policies might help them grow out of poverty? Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 12-4 Important issues in macroeconomics • What is the government budget deficit? How does it affect the economy? • Why does the U.S. have such a huge trade deficit? • Why are so many countries poor? What policies might help them grow out of poverty?
12-5 N Why learn macroeconomics? 1,The macroeconomy affects society's well-being. ■example:. Unemployment and social problems 2,The macroeconomy affects your well-being. example 1: Unemployment and earnings growth example 2: Interest rates and mortgage payments 3,The macroeconomy affects politics current events. example: Inflation and unemployment in election years Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 12-5 Why learn macroeconomics? 1,The macroeconomy affects society’s well-being. example: Unemployment and social problems 2,The macroeconomy affects your well-being. example 1: Unemployment and earnings growth example 2: Interest rates and mortgage payments 3,The macroeconomy affects politics & current events. example: Inflation and unemployment in election years