Introduction to Macroeconomics - 4023 Words

Introduction to Macroeconomics Macroeconomics is one of the main branches of economics. The best way to understand what macroeconomics is about is perhaps to contrast it with microeconomics, another main branch of economics. Microeconomics studies parts of the economy. Macroeconomics looks at the whole. In other words, macroeconomics tries to understand what happens in the economy in general, it takes an overview of the economy, whereas microeconomics explains what happens in different parts of the economy separately, taking one at a time. By â€Å"parts of the economy† we mean either groups of people (consumers, investors, workers, potential buyers of this good or that good), firms, groups of firms that produce the same good†¦show more content†¦... market for cash price of holding cash (interest forgone by holding cash) and amount of cash held by people and firms market for checking deposits price of holding checking deposits (interest forgone by holding checking deposits) and amount of checking deposits held by people and firms market for time deposits price of holding time deposits (interest forgone by holding time deposits) and amount of time deposits held by people and firms ... ... market for short-term government bonds price of holding short-term government bonds (interest forgone by holding those bonds) and amount of such bonds held by people and firms market for short-term corporate bonds (similar price and quantity variables) market for long-term bonds (similar price and quantity variables) ... ... Now, there seems to be a problem: Instead of the market for this good or that good, there is only one â€Å"goods† market in macroeconomics including all goods and services produced. When macroeconomics studies this goods market, it has to say something about the price and quantity produced and sold in this market. To put it in more plain language, as macroeconomics looks at all goods and services produced in the economy, it has to say something about the price of all goods and services taken together and the total quantity of all goods and services produced over a given period of time. But what price is the price that represents the prices of all goods and services?Show MoreRelatedINTRODUCTION The purpose of this assignment is designed on analysing macroeconomic indicators of1800 Words   |  8 PagesINTRODUCTION The purpose of this assignment is designed on analysing macroeconomic indicators of two countries: Italy and United Arab Emirates. 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(Investopedia.co m, 2015) However, microeconomics and macroeconomics are interdependent and complement eachRead MoreImportance of the Macroeconomics Objectives Towards the Malaysia Economic Performance.1564 Words   |  7 Pages Contents | Title | Page | 1.0 | Introduction | 3 | 2.0 | Macroeconomic Objectives | 4 | 3.0 * 3.1 * 3.2 | Economic GrowthThe ImportanceExample | 556 | 4.0 * 4.1 * 4.2 | UnemploymentThe ImportanceExample | 778 | 5.0 * 5.1 * 5.2 | InflationThe ImportanceExample | 9910 | 6.0 | Conclusion | 11 | 7.0 | References | 12 | 8.0 | Appendix | 13 | 1.0 Introduction This assignment is to discuss the importance of the Macroeconomics Objectives towards the Malaysia economic performanceRead MoreStock Price Index In China Case Study767 Words   |  4 PagesAn extensive amount of research from a variety of advanced countries has documented the macroeconomic effects on stock price indexes, with a majority of economists agree on the significant influence (Masuduzzaman, 2012; Chaudhuri and Smiles, 2004; Cheung and Ng, 1998; Chen, Roll and Ross, 1986; Fama and Schwert, 1977). 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