PENGANTAR ILMU EKONOMI
MAKRO
CHAPTER 2
MARKET AND GOVERNMENT IN A
MODERN ECONOMY
(Pasar dan Peranan Pemerintah dalam
Perekonomian)
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INTRODUCTION
• Pada tahun 1900an muncul doktrin “Laissez-faire”, artinya:
leave us alone (biarkan aku sendiri), atau:”hold that
government interfere as little as possible in economic”. Ini
adalah doktrin kebebasan ekonomi (sistem ekonomi pasar)
• Sistem ekonomi pasar melahirkan kegagalan pasar (market
failure), seperti: inefficiency, inequality, macroeconomic
problem, etc)
• Karena terjadi kegagalan pasar, maka setelah tahun 1900an
muncul “welfare state”, yaitu sebuah doktrin yang
menghendaki perlunya campur tangan pemerintah dalam
perekonomian. Misalnya: pajak, subsidi, JPS, pensiun, dst
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2.1. PASAR DAN PEREKONOMIAN
a. Pasar (market): “market is a mechanism
through which buyers and sellers interact to
set prices and exchange goods and services”
b. Market Equilibrium
QD =QS, menghasilkan harga dan jumlah
keseimbangan
c. Jenis-jenis pasar (bisa dilihat dari beberapa
sisi, misalnya: derajat persaingan, jenis
barang, dst)
d. Pasar dapat menyelesaikan 3 masalah
ekonomi: What, how, and for whom
e. Penentuan harga dalam sistem ekonomi
pasar (lihat bagan berikut):
Mekanisme
pasar adalah
bentuk
organisasi
ekonomi di
mana pembeli
dan penjual
bertemu dan
berinteraksi
melalui pasar
untuk
memecahkan
tiga masalah
ekonomi yang
mendaar
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Supply of factors:
Labour, land, capital
Price on factor
markets (wages,
rents, interest)
Demand for
factors
What
CONSUMERS
How
BUSINESSES
(firms)
For whom
Demand for
goods
Price on product
markets
Supply of goods
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2.2. TRADE, MONEY, AND CAPITAL
a. Trade (Perdagangan)
Kenapa ada perdagangan: untuk apa: apa manfaat perdagngan (gain from trade,
specialization and division of labor);
b. Money: Lubricant of exchange
What is money?
Fungsi uang:
1. The means of exchange/ a medium of exchange
2. Unit of account
3. Store of value (wealth)
4. Standard of defered payment
c. Capital
• Jenis-jenis modal: bangunan, mesin dsb
• Capital formation
•Human capital
•Fungsi modal
• Perbedaan modal dengan investasi
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2.3. THE ECONOMIC ROLE OF GOVERNMENT
a.
b.
c.
To increase efficiency
Sistem ekonomi pasar pada pelaksanaannya mengalami kegagalan
(market failure) oleh karena itu pemerintah perlu campur tangan dalam
perekonomian
To promote equity
Pasar tidak selalu melakukan distribusi sumberdaya secara adil, maka
perlu campur tangan pemerintah. Bentuk campur tangan misalnya
dalam penarikan pajak, subsidi
To foster macroeconomic growth and stability
1) Growth: sumber pertumbuhan, LPE, pertumbuhan dan kualitas
pembangunan, kebijakan fiskal dan moneter
2) Stability of economic: indikator stabilitas, kebijakan pemerintah untuk
stabilitas ekonomi, dst.
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Government Can Remedy The Shortcoming of The Market
Market Failure
Government Intervention
Examples of Govt Policy
1. Inefficiency:
• monopoly
• externalitas
• public goods
Encourge competition
Intervene in markets
Encourge beneficial
activities
Antitrust laws,
deregulation,…
Antipolution laws, ect.
Build ligthouse, public ed.
2. Inequality
(ketidakmerataan)
Redistribution income
Progressive tax, transfer
programs
3. Macroeconomic
Problems:
• high inflation and
employment
• slow of economic
growth
Macroeconomic policies
Stimulate growth
Fiscal & Monetary policy
• Investment in education
• Raise national saving
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CHAPTER 20
OBJECTIVES AND INSTRUMENT OF MACROECONOMIC
(THE GOALS OF MACROECONOMIC POLICIES)
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INTRODUCTION
The birth of macroeconomics (ME)
1. Founded by John Maynard Keynes 1930an
2. Central ME questions:
(a). Why do output and employment sometimes
fall, and how can employment be reduced
(b) What are the sources of inflation , and how can
it be keft under control; and
(3) How can a nation increase its rate of economic
growth
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OBJECTIVES AND INSTRUMENTS OF
MACROECONOMIC
No.
Objectives of MEP
Instruments/Tools
1
Output: rapid growth of output
Monetary policy
2
Employment
Fiscal policy
3
Price level stability
Monetary policy
4
Exchange rates stability
Monetary policy
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INTERNATIONAL LINKAGES
1. All nation participate in the world economy:
trade and finance (export and import)
2. Trade policies: tariffs, quotas, etc
3. International financial management (foreign
exchange rates)
4. Exchange rates represents the price of its own
currency in terms of the currencies of other
nations
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AGGREGATE SUPPLY AND DEMAND
(AS AND AD)
1. AS refers to the total amount/quantity of goods and services
that the nation’s business willingly produce and sell in given
period
AS = f(Price, Level, Prod Capacity of the ec, costs level)
AS dan P memiliki hubungan positif
2. AD refers to the total amount that different sector in
economy willingly spend in given period (sektor
perekonomian: consumers, business, government,
foreigners),
AD = f(Price level, Monetary Policy, Fiscal Policy, etc)
AD dan P memiliki hubungan negatif
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3. Macroeconomic Equilibrium
P
Equilibrium
consequences:
-. Terjadi output dan
harga keseimbangan
-. Terdapat employment
-. Terjadi international
trade
AS
B
C
P1
E
PE
AD
Q
QB
QE
QC
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3. The causes of Shifting in AD
P
The causes of shipfting
in AD:
Increase aggregate
spending
Exp: increase in military
spending, etc
AS
F
PF
E
AD1
PE
AD
Q
QE
QF
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4. The causes of shipting in AS
AS1
P
AS
PG
G
E
PE
AD
The causes shifting in
AS. The cost of
production increase
Increase of the world
price of crude oil, rate of
electricity, etc.
The consequences of it
is decline of output,
employment, inflation,
etc. it lead to
determination of
macroeconomic goals
Q
QG
QE
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5. Long-run Economic Performance
P
The causes of price
increase in the long
run (P1900-P2000):
AS
P-2000
AD
AS
P-1900
AD
Q
Q-1900
Q-2000
2T
20 T
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CHAPTER 21
MEASURING ECONOMIC ACTIVITY
(NATIONAL PRODUCT/INCOME)
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1. GROSS DOMESTIC PRODUCT (GDP)
• Definition:’it is the sum of the dollar values of
consumption ( C ), gross investment ( I ), government
purchases of goo and services ( G ), and net export
(X-M) produced within a nation during a given year”
(Samuelson), 2002:434).
GDP = C + I + G + (X-M)
• The purpose of measuring GDP is to measure the
overall performance of an economy
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2. THE METHOD OF MEASURING GDP
a.
Production Approach (value added approach)
value added is the different between a firmsales and its purchases of materials
(cost of intermediate product) from after firms.
State of
Production
Sales Receipts
(1)
Cost of interProduction
(2)
Wheat
23
0
23
Flour
53
23
30
Baked dough
110
53
57
Final product
(Bread)
190
110
80
Total
Value added
(Wages,
Profit, ets)
(3) = (1-2)
190
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b. Expenditure approach, and ( C ) Earning/cost approach
Expenditure Approach
Earning Approach
Components of GDP
Earning or costs as soyrces of
GDP
Consumption ( C ) + Gross
Private Domestic Investment (
I ) + Government Purchases (
G ) + Net Export (X-M)
Wages, salaries, & other labor
Income + Interest, rent, &
other property Income +
Indirect taxes + Depreciation +
Profits
Equals: Gross Dom Product
Equals: Gross Dom Product
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3. THE PROBLEM OF DOUBLE COUNTING
We defined GDP as the total production of final goods
and services. A final product (goods) is one that is
produced and sold for consumption or investment.
GDP excludes intermediate goods (i.e. goods that are
used up to produced other goods). GDP therefore
includes bread but not wheat, and home computers
but not computer chips.
If bread and wheat sumed in the economic activity, the
double counting is happened.
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4. DETAILS OF THE NATIONAL ACCOUNTS
1.
2.
3.
Nominal GDP (GDP at market prices/current prices)
Real GDP (GDP at constant prices):
is multiplying the quantities of goods by fixed set of prices, or
Q = real GDP = Nominal GDP divided by GDP deflator = PQ/P
GDP deflator = (Nominal GDP/real GDP) = general prices
= index number of prices
The kinds of price indexes:
- Consumers price index (CPI), atau IHK
- Producers price index (PPI or IHP) is the price index of goods sold at the
wholesale level (such as steel, wheat, oil, ect) (Samuelson, 2002:774)
- GDP deflator
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5. COMPONENT OF GDP
1.
2.
3.
4.
Consumption ( C )
• durable goods: automobiles, motorcycles, etc
• nondurable goods: food, drink, etc
• services (medical care, bank, etc
Investment and capital formation ( I )
• physical investment (additional capital stock)
• financial investment (using money to buy stock, or to open saving
account
Government expenditure ( G )
• payroll expenditures on its employees
• gross investment/public goods
• office equipment, etc. (excluded; transfer payment
Net exports ( X-M): it is measurement of inter linkages
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6. FROM GDP TO DISPOSIBLE INCOME (DI)
GDP = C + I + G + (X – M)
NI = National Income
= GDP – (Depreciation + Indirect Taxes)
DI = Disposible Income
= NI – (Direct Taxes + Net Business Saving) + Tr
Or:
NI = w + r + i + π
GDP = NI + Depreciation + Indirect Taxes
Notes: w = wages, r = rent, i = interest, π = profit
See diagram below
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Net Export
Government
Expenditure
Depreciation
Indirect Taxes
Direct Taxes
Investment
Net business saving
Transfer
payment
National Income
DI
Consumption
GDP
National Income
( NI )
Disposible Income
( DI )
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7. BEYOND THE NATIONAL ACCOUNT
1. Omitted non market activities: meals,
loundering, child care services, ect
2. Omitted environment demages
3. Calculation is normally in averages, ect
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