The Study of Macroeconomics - 1507 Words

†¢ Micro vs. Macro †¢ Microeconomics – the study of how individual households and firms make decisions and how they interact with one another in markets. †¢ Macroeconomics – the study of the economy as a whole. – Its goal is to explain the economic changes that affect many households, firms, and markets at once. †¢ The Two Groups of Economists †¢ Macroeconomists †¢ Focus on the economy as a whole. †¢ Spend much time analyzing how total income changes and how changes in income cause changes in other modes of economic behavior. †¢ Microeconomists †¢ Focus on the markets for individual commodities and on the decisions of single economic agents. †¢ Hold total income constant. †¢ The Two Groups of Economists †¢ Macroeconomists †¢ Spend†¦show more content†¦Ã¢â‚¬ ¢ The Great Depression in the 1930s †¢ â€Å"America s Great Depression began with the dramatic crash of the stock market on Black Thursday, October 24, 1929 when 16 million shares of stock were quickly sold by panicking investors who had lost faith in the American economy. At the height of the Depression in 1933, nearly 25% of the Nation s total work force, 12,830,000 people, were unemployed.† †¢ â€Å"Wage income for workers who were lucky enough to have kept their jobs fell almost 43% between 1929 and 1933. It was the worst economic disaster in American history. Farm prices fell so drastically that many farmers lost their homes and land. Many went hungry.† †¢ JOHN MAYNARD KEYNES The General Theory of Employment, Interest and Money ï  ± argued that it is possible for high unemployment and underutilized capacity to persist in market economies ï  ± argued that government fiscal and monetary policies can affect output and thereby reduce unemployment and shorten economic downturns †¢ Measuring a Nation’s Income †¢ Measuring a Nation’s Income †¢ Microeconomics †¢ Microeconomics is the studyShow MoreRelatedA Study of the Macroeconomic Indicators1438 Words   |  6 PagesMacroeconomic indicators The period from 2008 through today has been a highly difficult one, with countries struggling to support their national economies, to reduce costs and guarantee the living standards of their populations. At a general level, the recent years have manifested an economic crisis of a gravity unwitnessed since the Great Depression of 1929-1933. At a more particular level however, a deeper analysis would be conducted through the analysis of four economic indicators in four importantRead MoreMacroeconomics Study Guide Essay2239 Words   |  9 Pagesï » ¿Q1) Which of the following is a correct pair of a resource and its opportunity cost? a) land and interest b) capital and rent c) labor and wages d) services and rent Q2) Joe could be at three different jobs that pay $15, $10, and $8 respectively. If he is not working, the opportunity cost is... a) $15. b) $10. c) $8. d) $33. Q3) Apples, oranges, and peaches are the same price. In descending order, Joe’s favorite fruits are apples, oranges, and peaches. If Joe buys an apple,Read MoreMacroeconomics Is The Study Of Income And Production On The National Level2035 Words   |  9 PagesMacroeconomics is the study of income and production on the national level. The economic problems of nations around the world are constantly in the news. A keen understanding of macroeconomics is required to adequately comprehend the impacts a nation’s decisions will have on its economy. In the global market of today, a country’s decision can have impact on the economies of many other nations. Macroeconomics is focused on the operation of a nation’s economy as a whole, and there are many typesRead MoreFinance Is Based On Economics841 Words   |  4 Pagesneeds by humans. Macroeconomics started with John Maynard Keynes, an English economist, who published a book entitled General Theory of Employm ent, Interest and Money in 1936. Keynes offered a clarification for the fallout from the Great Depression, when goods remained unsold and workers unemployed, a feat that left classical economists stumped. Keynes theory explained why markets may not clear. This theory evolved throughout the 20th century, diverting into several macroeconomic schools of thoughtRead MoreThe Role of Macroeconomic Variables in the Financial Market673 Words   |  3 PagesMacroeconomic variables play a significant role in the financial market and when it is properly used it can be a precious resource for the investors and traders. By understanding the integration between the macroeconomic variables and the stock market will guide investors a long way to make better investment decision. The key objective of the study is to investigate the impact and the relationship of six selected macroeconomic variables namely, Consumer Price Index(CPI), Gross Domestic Product(GDP)Read MoreEconomics Affects Our Daily Li fe1576 Words   |  7 Pagesanalyzes and studies production, factors of production, demand and supply analysis, consumption, distribution, market structure etc. Question 1 Economics can be classified into two main branches, which are macroeconomics and microeconomics. Macroeconomics refers to study of economic aggregates (aggregate demand, aggregate supply etc.) while Microeconomics refers to study of behavior and performance of individual parts of economy such as firm or household. Macroeconomics Macroeconomics includes studyingRead More Impact of Macroeconomics on the Housing Industry Essay599 Words   |  3 Pagesbetter understand the real impact macroeconomics has in an economy or a particular industry, it is better to define what macroeconomics is and what it attempts to study. Contrary from microeconomics which studies the impact that individuals or companies have in a local economy, macroeconomics focuses on the behavior of the economy or industries as a whole, in a national or global perspective. (Investopedia.com, 2015) However, microeconomics and macroeconomics are interdependent and complement eachRead MoreQuestions On Arbitrage Pricing Theory1493 Words   |  6 Pageschallenge of most studies has been identifying which factors to be used. Historically, most studies have relied on general economic theories or empirical observations. †¢ Motivation (your take on the topic and the motive behind it) This study aims to add values in setting a priori in APT studies by regressing SP financial sectors returns data on various macroeconomic variables. †¢ Brief summary of findings †¢ A paragraph describing layout of the rest of the paper In this study, by regressing yRead MoreThe Effect Of Macroeconomic Indicators On Economic Growth On A Petrol Dollar Economy Essay1391 Words   |  6 PagesTHE EFFECT OF MACROECONOMIC INDICATORS ON ECONOMIC GROWTH IN A PETROL-DOLLAR ECONOMY: THE NIGERIAN EXPERIENCE 1. Introduction The Central Bank of Nigeria Act of 1958(CBN) vested the monetary policy powers of economic stability on the apex regulatory bank (CBN).Since our independence in 1960,CBN has operated a fixed exchange regime which was at various times was at par with the British pounds and later the United States Dollar. This exchange rate regime was operated in additionRead MoreThe Volatility of Crude Oil Prices895 Words   |  4 Pagesprice of oil and the macroeconomic variables has been identified for all recessions with the exception of one from the beginning of 1950 (Jimà ©nez-Rodrà ­guez and Sà ¡nchez, 2012). Oil price shifts have the capability of affecting the economy by means of numerous channels including a rise in production costs, uncertainty concerning investment, inflation and wealth transfer. Even though traditionally, scholars have emphasized on the general effect of oil shocks on the macroeconomic variables, Bjà ¸rnland