Jahan University
Faculty Name : Economics
Department of :BBA
Subject: Principles of Macro Economics
Lecture# 1
Lecturer: Dr A. K. Naseri
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Objectives
• After compellation of this lecture students will be able to know:
• Objective 1 : Be able to Know the meaning of Macro Economics
• Objective 2: Be able to know the scope of Macro Economics
• Objective 3 :Be able to know the importance of Macro Economics
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Definitions
•
According to Shapiro
o
Macro Economics deals with the functioning of the economy as a
Whole.
o It studies the behavior of economics aggregates such as aggregate income,
consumption, investment and the over all level of prices
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•
Major Topics of Macro Economics
o Aggregate demand
o Trade cycle
o Aggregate supply
o International trade
o Saving
o Economics planning
o Inflation/deflation
o Fiscal policy
o Economics growth
o Monetary policy
o Unemployment
o Exchange rate
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Importance
o It shows the picture of whole economy.
o It is helpful in international comparisons
o It explain aggregate behavior macro economics entities;
o Households
o Firms
o Government
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o It explain economics dynamisms for making best decisions.
o Price levels, income levels
o Production levels, employments levels
o It is useful for planers for preparing rational policy for country’s development
o Fiscal policy
o Monetary policy
o Exchange rate policy
o etc.
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Scope of Macro Economics
o Macro economics studies the concepts of;
o National income, its methods and measurements.
o Problem depend to unemployment.
o Per Capita Income
o Money, Banks and other financial institutions.
o Tariff rate, trade cycle, international trade.
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Role of Macro Economics in a circular flow
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