文档介绍：CHAPTER 1
MACROECONOMICS: THE BIG PICTURE
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Economist
John Maynard Keynes, The General Theory of Employment, Interest and Money (5 June 1883 – 21 April 1946) was a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory as well as on many governments' fiscal policies. He advocated interventionist government policy, by which the government would use fiscal and ary measures to mitigate the adverse effects of economic recessions, depressions and booms. He is one of the fathers of modern theoretical macroeconomics.
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What You Will Learn in this Chapter:
An overview of macroeconomics, the study of the economy as a whole, and how it differs from microeconomics
The importance of the business cycle and why policy-makers seek to diminish the severity of business cycles
What long-run growth is and how it determines a country’s standard of living
The meaning of inflation and deflation and why price stability is preferred
What is special about the macroeconomics of an open economy, an economy that trades goods, services, and assets with other countries
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Macroeconomics vs. Microeconomics
To understand the scope and sweep of macroeconomics, let’s begin by looking more carefully at the difference between microeconomic and macroeconomic questions
MICROECONOMIC QUESTION
MACROECONOMIC QUESTION
Go to business school or take a job?
How many people are employed in the economy as a whole?
What determines the salary offered by Scotiabank to Caroline Rivas, a new MBA graduate?
What determines the overall salary levels paid to workers in a given year?
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Macroeconomics vs. Microeconomics
MICROECONOMIC QUESTION
MACROECONOMIC QUESTION
What determines the cost to a university of offering a new course?
What determines the overall level of prices in the economy as a whole?
What government policies should be adopted to make it easier for low-e students to attend university?
What government policies sho