Macroecnomics - 1187 Words

1. Overview of the Modern Macroeconomy 1.1 Essential Structure (1) Scarcity in Resources ïÆ'› Choice = Decision Making = Tradeoff Market/Price Mechanism ïÆ'› Exchange = Swap = Transaction = Trading Factor Demanders (Employers) Micro Partial Equilibrium ï‚ · Macro General Equilibrium Factor Markets Labor etc. Wage etc. Factor Suppliers (Employees) Production Cost Firms (Labor) Income Intervention by Policy and Regulation Government Transfer Income Tax Subsidy Sales Tax Households Intertemporal Financial System [Markets + Institutions] Funds Demanders (Investors/Borrowers) ï‚ · Funds Suppliers (Savers/Lenders) Real Sector Flows Money Sector Flows Sales Revenue Goods Suppliers (Producers) q = f (L, K, M, T, E)†¦show more content†¦1~2, 27 Macroeconomics [1] by C-J Huang 4 1. Overview of the Modern Macroeconomy 1.2 Key Indicators (7) †¢ Utility Function U = Stock = Level 1. Uï‚ ¢ MU = Change in Stocks = Flow ï‚ º 2. Uï‚ ¢ Change in Flows = Double ï â€ž ï‚ ¢ = S †¢ Stock Price: $100 ïÆ'ž $120 ïÆ'ž $132 1. The stock price finally rises to/at $___. 2. The stock price finally rises by $___. 3. The stock return changes by ___%. 4. The inflation rate is falling†¦ Macroeconomics U1: Blanchard Chs. 1~2, 27 1. Overview of the Modern Macroeconomy 1.3 World Tour (1) US 2006: Population = 301M [TBMK]; Per Capita GDP = US$43,800 1/5 World GDP Created and Enjoyed by 1/20 World Population T1-1 Output Growth Unemployment Inflation 1970– 2006 3.1 6.2 4.0 1996– 2006 3.4 5.0 2.0 2006 3.3 4.6 2.9 2007 2.1 4.6 2.6 2008 2.5 4.8 2.2 Note: Inflation Based on the GDP Deflator; Data by OECD [75% World GDP]. Productivity Growth by Output per Hour Worked New Economy by IT ï‚ · Global Warming Macroeconomics U1: Blanchard Chs. 1~2, 27 Macroeconomics [1] by C-J Huang 5 1. Overview of the Modern Macroeconomy 1.3 World Tour (2) EU 2006: Population = 496M;Show MoreRelatedPhilippine Development Administration1782 Words   |  8 Pageshuman resources through improved social services and protection.) as well as the policy directions that would ensure the country will not fall into the path of a trickle-down jobless growth which we have seen in the past years. Chapter 2, The Macroecnomic Policy, outlines the initiatives that will ensure the stability and growth of a macroeconomic environment. Chapter 3, Competitive Industry and Services Sectors, outlines the imperatives for a globally competitive and innovative industry and servicesRead MoreThe Theory Proposed By Modigliani And Miller3648 Words   |  15 Pagescompetitive equilibrium model of capital structure and industry dynamics, says that companies make their decision on capital structure on the basis of peculiar technology shocks. Cook and Tang (2010) put forward the fact as a basis of arguement that good macroecnomic helps the companies to adjust their capital structure to acheive their target much quicker than in the bad conditions. Levy, (2003) says that according to their studies the companies which are unconstrained tme their issue choice coincide with