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What is Macroeconomics? GDP, Inflation, and National PoliciesWhat is Macroeconomics? GDP, Inflation, and National Policies Macroeconomics is a branch of economics that studies the behavior, structure, and performance of an economy as a whole. Unlike microeconomics, which focuses on individual markets and consumer behavior, macroeconomics looks at the big picture—national economies, global trends, and how government policies influence overall...0 Kommentare 0 Geteilt 2KB Ansichten 0 Bewertungen
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What Is the Difference Between Microeconomics and Macroeconomics?What Is the Difference Between Microeconomics and Macroeconomics? Economics is the study of how people and societies use limited resources to satisfy unlimited wants. To make this broad subject easier to understand, economists divide it into two main branches: microeconomics and macroeconomics. While they are closely related, they focus on different levels of economic activity and answer...0 Kommentare 0 Geteilt 1KB Ansichten 0 Bewertungen
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Aggregate demand and aggregate supply curvesKey points Aggregate supply is the total quantity of output firms will produce and sell—in other words, the real GDP. The upward-sloping aggregate supply curve—also known as the short run aggregate supply curve—shows the positive relationship between price level and real GDP in the short run. The aggregate supply curve slopes up because...0 Kommentare 0 Geteilt 19KB Ansichten 0 Bewertungen
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Aggregate demand and aggregate supply curvesKey points Aggregate supply is the total quantity of output firms will produce and sell—in other words, the real GDP. The upward-sloping aggregate supply curve—also known as the short run aggregate supply curve—shows the positive relationship between price level and real GDP in the short run. The aggregate supply curve slopes up because...0 Kommentare 0 Geteilt 25KB Ansichten 0 Bewertungen
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Aggregate demand in Keynesian analysisKey points Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports. Consumption can change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels. Investment can change in response to its expected profitability, which in turn is shaped by...0 Kommentare 0 Geteilt 20KB Ansichten 0 Bewertungen
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Beyond GDP: other ways to measure the economyKey points Gross national product, or GNP, includes what is produced domestically and what is produced by domestic labor and business abroad in a year. National income includes all income earned: wages, profits, rent, and profit income. Net national product, or NNP, is GNP minus depreciation. Depreciation is the process by which capital ages...0 Kommentare 0 Geteilt 22KB Ansichten 0 Bewertungen
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effect of changes in policies and economic conditions on the foreign exchange marketLesson summary Changes in the supply of or demand for a currency will cause that currency to appreciate or depreciate. The demand for a currency changes based on other countries' wanting to buy goods, services, or assets using that currency. The supply of a currency changes based on how much people using that currency want the goods, services, or assets in other countries....0 Kommentare 0 Geteilt 17KB Ansichten 0 Bewertungen
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Indexing and its limitationsKey points A payment is said to be indexed if it is automatically adjusted for inflation. An adjustable-rate mortgage is a loan used to purchase a home in which the interest rate varies with market interest rates. Cost-of-living adjustments are a contractual provision that wage increases will keep up with inflation. Indexing and...0 Kommentare 0 Geteilt 13KB Ansichten 0 Bewertungen
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Indexing and its limitationsKey points A payment is said to be indexed if it is automatically adjusted for inflation. An adjustable-rate mortgage is a loan used to purchase a home in which the interest rate varies with market interest rates. Cost-of-living adjustments are a contractual provision that wage increases will keep up with inflation. Indexing and...0 Kommentare 0 Geteilt 13KB Ansichten 0 Bewertungen
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Interpreting the aggregate demand/aggregate supply modelKey points The aggregate demand/aggregate supply model is a model that shows what determines total supply or total demand for the economy and how total demand and total supply interact at the macroeconomic level. Aggregate supply is the total quantity of output firms will produce and sell—in other words, the real GDP. Aggregate demand is the...0 Kommentare 0 Geteilt 20KB Ansichten 0 Bewertungen
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Keynes’ Law and Say’s Law in the AD/AS modelKey points The short-run aggregate supply, or SRAS, curve can be divided into three zones—the horizontal Keynesian zone, the vertical neoclassical zone, and the upward sloping intermediate zone in between the Keynesian and neoclassical zones. Keynes’ Law states that demand creates its own supply; changes in aggregate demand cause changes in real GDP and...0 Kommentare 0 Geteilt 14KB Ansichten 0 Bewertungen
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Macroeconomic perspectives on demand and supplyKey points Keynes’ Law states that demand creates its own supply. Say’s law states that supply creates its own demand. Many mainstream economists take a Keynesian perspective—emphasizing the importance of aggregate demand—for the short run and a neoclassical perspective—emphasizing the importance of aggregate supply—for the...0 Kommentare 0 Geteilt 14KB Ansichten 0 Bewertungen
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