PB202
MACROECONOMICS
CHAPTER 1
INTRODUCTION TO
MACROECONOMIC
Chapter Summary
Arrow Process
Why use graphics from PowerPointing.com?
- What is macroeconomics?
- What is aggregate
-Macroeconomics versus
microeconomics
-Macroeconomic goal
MACROECONOMICS
IN GENERAL
demand?
-the curve
GOVERNMENT
POLICIES AND
TOOLS
Fiscal policy (tax &
government
spending) and
Monetary Policy
(supply of money)
AGGREGATE
DEMAND
-Price stability
-Economic growth
-Full employment
- Distribution of income
AGGREGATE
SUPPLY
MACROECONOMIC
GOAL
-Definition
-- the curve
Prepared by: Azlina bt Azmi
Session of December 2010
This illustration is a part of ”Building Plan”. See the whole presentation at slideshop.com/value-chain
What is macroeconomics?
 The branch of economics that studies
decision making for the economy as a whole
(inflation, unemployment, economy growth,
money supply, national incomes)
Macroeconomics vs Microeconomics
Microeconomics
Macroeconomics
Studies individual income
Studies national income
Analyzes demand for and
supply of labor
Analyzes total employment
in the economy
Deals with households’ and
firms’ decisions
Deals with aggregate
decisions
Analyzes demand and
supply of goods
Analyzes aggregate
demand and aggregate
supply
Inflation
Government Policies
 In order to stimulate economic growth