Macroeconomics: The Study of Economy as a Whole
Classified in Economy
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The purpose of economy is production of conditions and services for consumption now or in the future.
Macroeconomics: is the study of the behavior of the economy as a whole, examines the forces that affect items, consumers and workers in the aggregate.
Two central themes:
The short-term fluctuations in output employment financial conditions and prices that we call the business cycle.
The long-term trends in output and living standards known as economic growth.
Output: high level and rapid growth of output (production of goods and services)
Employment: high level of employment with low involuntary unemployment.
Stable prices: low or know inflation instruments
Monetary policy: buying and selling bonds, regulations, financial institutions.
Fiscal policy: government expenditures, taxation
GDP(Gross Domestic Product): the market value of all final goods and services
produced in a country during a given period of time; normally one year.(lo producido dentro del pais)
GDP price index: price of all goods and services produced in the country, rather than of a single component.
Producer price index: it measures the level of prices of the wholesale of producer stage.
4 main stages: -market value pxq
-final goods
- production ownership
- time frame
 | GDP = C + I + G + X GNP(Gross National Product): is the market value of all final goods and services produced with resources of a country (lo producido en una nacion) | |
Formula para saber el growth rate: Pt-Pt-1/ Pt-1 * 100%
Pt: periodo actual(el mas reciente)
Pt-1: periodo inmediato anterior
3 mayores componentes de consumo:
-bienes duraderos
-bienes no duraderos
-servicios
Consumption function-disposable income=
di= consumption + saving
mayor disponsable income, mayor consumo
personal savings: part of a disponsable income that its not consume
consumption and investment: major components of national output
investment: second major component of private spending after consumption,
si la demanda va para abajo significa que hay recesion
aggregate demand(AD): the amount of goods and services consumers willingly but at any price level.
business cycles: economy wide fluctation in output,employments finacial conditions and prices.