01 Giới thiệu về lập trình Python và các công cụ lập trình ntdat qnuslide MACROECONOMICS Lecturer MSc Nguyen Thi Thuy Dung 2 Outline courses • Chapter 1 Introduction to Macroeconomics • Chapter 2 Macr[.]
MACROECONOMICS Lecturer: MSc Nguyen Thi Thuy Dung Outline courses • Chapter 1: Introduction to Macroeconomics • Chapter 2: Macro Indicatiors Measurement • Chapter 3: Aggregate Demand – Aggregate Supply • Chapter 4: Aggregate Demand and Fiscal Policy • Chapter 5: Money system and Monetary Policy • Chapter 6: Unemployment and Inflation • Chapter 7: Open Economy Chapter 1: Introduction to Macroeconomics • Defining Economics • Principles of Economics • Microeconomics vs Macroeconomics • The Subject Matter of Macroeconomics • Key Macroeconomic Issues I What is Economics? • Macroeconomics is the branch of economics • Economics is a discipline which studies how scarce economic resources are allocated and used to maximize production for a society It is a social science which deals with economic behavior of individuals and organizations engaged in the production, distribution and consumption of goods and services • The study of how people allocate their limited resources to satisfy their unlimited wants • The study of how people make choices Principles of Economics • Resources • Inputs that are used to produce other things to satisfy people’s wants • Wants • What people would buy if their incomes were unlimited • Scarcity • Occurs when the ingredients for producing things that people desire are insufficient to satisfy all wants • With limited income (resources), people must make choices to satisfy their wants • We never have enough of everything, including time, to satisfy our every desire Resources (Factors of Production) • Production capital (K): the value of assets that directly serve the production process such as machinery, equipment, factories, etc • Labor (L): human capital used in the production process Accumulated training and education of workers • Natural resources (R): natural resources such as land, minerals, etc • Technology (T): a set of skills, methods, and processes to transform resources Principles of Economics • Opportunity Cost • The highest-valued, next-best alternative that must be sacrificed to obtain something or to satisfy a want • The idea behind opportunity cost is that the cost of one item is the lost opportunity to or consume something else Or ask yourself: What would you if you did not this? • A fundamental principle of economics is that every choice has an opportunity cost - If you sleep through your economics class (not recommended, by the way), the opportunity cost is the learning you miss from not attending class - If you spend your income on video games, you cannot spend it on movies Principles of Economics Limited Resources & Unlimited Wants Scarcity Choices Opportunity Cost Figure 1-1 Production Possibilities Frontier (Trade-Offs) Z W The Production Possibilities Frontier • PPF is a graph that shows the different combinations of output that the economy is capable of producing with the available factors of production Output of Computers PPF Output of Cars What differences between point A,B,C,D??? The Choices Society Faces (cont'd) • Efficient Point • Any point on the production possibilities curve at which resources generate the maximum possible output (point A,C) • Inefficient Point • Any point below the production possibilities curve at which resources not generate the maximum possible output (point B) • Any point above the production possibilities curve at which resources beyond production capacity (point D) Fields of Economics • The study of economics is subdivided into two general fields: Economics Microeconomics Macroeconomics 12 Microeconomics • The study of decision making undertaken by individuals (or households) and by firms • Like looking though a microscope to focus on the smaller parts of the economy • Decision of a worker to work overtime or not • A individual’s choice of buying a product • An individual firm advertising • Decision of a firm to produce in order to profit maximization 13 Macroeconomics • The study of the behavior of the economy as a whole i.e the behavior of aggregate economic agents on aggregate economic markets • deals with the economic issues that affect the entire economy and most of society • The national unemployment rate • The total of national income such as gross domestic product • The general price level, inflation 14 Microeconomics or Macroeconomics??? • A household's decision on how much to save from income • The impact of unemployment on economic growth • A firm's decision on how many workers to hire • Impact of money printing on inflation 15 Positive and Normative Economics Positive Economic Theory is the objective or scientific attempt to describe and explain the behavior of the economy and its important variables; reflects facts and studies actual economic performance; is an explanation why the economy works as it does; is a basis for predicting how the economy will respond to changes in circumstances; free from subjective value judgments; represents an approach of a scientist Normative Economic Theory involves subjective value judgments about what economy must be or what measure is to be undertaken on the base of a particular economic concept or theory; makes prescriptions what should be done in the economy; offers recommendations for changes in economic policy to achieve an optimal and desirable state of affairs; is based on personal (subjective) value judgments; represents an approach of a politician 16 Positive or Normative Economics??? • Society faces a short-run trade-off between inflation and unemployment • Increasing the speed of money printing will cause high inflation • Central banks need to slow down money printing to curb inflation • The government should cut taxes to encourage consumption and economic growth 17 Key Macroeconomic Issues Overall output - long-run changes – economic growth - short run fluctuations – business cycle Unemployment Inflation Interest Rates Government Budget Exchange Rates Macroeconomic Policy ? 18 Key Questions Macroeconomists Try to Answer ? What determines economic fluctuations? ? Why some countries grow faster than others ? What causes unemployment ? What drives prices changes? ? ? ? What is the role of economic policies and the government? How being part of a global economic system affects the economy of a country? Answer: study macroeconomics and be informed! ? ? 19 Thank you For your attention TS Nguyễn Thành Đạt 20 ... courses • Chapter 1: Introduction to Macroeconomics • Chapter 2: Macro Indicatiors Measurement • Chapter 3: Aggregate Demand – Aggregate Supply • Chapter 4: Aggregate Demand and Fiscal Policy • Chapter. .. and Fiscal Policy • Chapter 5: Money system and Monetary Policy • Chapter 6: Unemployment and Inflation • Chapter 7: Open Economy Chapter 1: Introduction to Macroeconomics • Defining Economics •