Macroeconomics
Chapter 1,The Science of Macroeconomics
What is Economics?
Normative Definition,Economics is the science that studies how to efficiently allocate economic resources
Positive Definition,Economics is the science that studies how an economy operates or how economic variables are determined under the given economic system.
The System of an Economy,
The economic system can briefly be distinguished in terms of
The ownership,private ownership and public ownership
The mechanism of resource allocation,planning mechanism and market mechanism
What we shall study in Macroeconomics?
How are the macroeconomic variables determined?
How can we explain unemployment and inflation?
What are the affects of a macroeconomic policy?
What determine economic growth?
Debates in Macroeconomics
New Classical Macroeconomics:
Representative Agent’s optimization
Rational Expectation
Market Clearing
New Keynesian Macroeconomics
No Representative Agent’s optimization
No Rational Expectation
No Market Clearing
Chapter 1,The Science of Macroeconomics
What is Economics?
Normative Definition,Economics is the science that studies how to efficiently allocate economic resources
Positive Definition,Economics is the science that studies how an economy operates or how economic variables are determined under the given economic system.
The System of an Economy,
The economic system can briefly be distinguished in terms of
The ownership,private ownership and public ownership
The mechanism of resource allocation,planning mechanism and market mechanism
What we shall study in Macroeconomics?
How are the macroeconomic variables determined?
How can we explain unemployment and inflation?
What are the affects of a macroeconomic policy?
What determine economic growth?
Debates in Macroeconomics
New Classical Macroeconomics:
Representative Agent’s optimization
Rational Expectation
Market Clearing
New Keynesian Macroeconomics
No Representative Agent’s optimization
No Rational Expectation
No Market Clearing
