MacroeconomicsPresentation施羽何明慧章毓琬资料解读.pptx

19.20.21 Made by : 60218施羽 60219何明慧 60221章毓婉 Macroeconomics Chapter 19 Introduction to Macroeconomics ※What are Macroeconomics and Microeconomics? Microeconomics examines the functioning of individual industries and the behavior of individual decision-making units-firms and households. Macroeconomics deals with economy as a whole . Macroeconomics focuses on the determinants of total national income, deals with aggregate investment and consumption, and looks at the overall level of prices instead of individual prices. ※What does Macroeconomics concern ? Output growth Unemployment Inflation and deflation Government policy makers would like to have high output growth , low unemployment, and low inflation. We will see that these goals may conflict with one another and that an important point in understanding macroeconomics is understanding these conflicts. ※Output Growth 1.business cycle: the technical name for the ups and downs in economies. 2.aggregate output: the total quantity of goods and services produced in the economy in a given period. 3.recession:recession is a period during which aggregate output declines . 4.depression:a prolonged(adj.持续时间长的) and deep recession. 5.Business cycle: the cycle of short –term ups and downs in the economy. Each business cycle consists of two parts: ups (usually called expansion or a boom) and downs (usually called contraction, recession or slump) In this business cycle, the economy is expanding as it moves through point A from the trough to the peak. When the economy moves from a peak down to a trough, through point B, the economy is in recession. ※Unemployment The unemployment rate- the percentage of the labor force that is unemployed –is a key indicator of the economy’s health. Because the unemployment rate is usually closely related to the economy’s aggregate output, announcements of each month’s new figure are followed with great interest by economists, politicians, and policy make