Scribd
Upload
14 views

Introduction to Macroeconomics

Uploaded by

foysalshahrier.rabit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
14 views

Introduction to Macroeconomics

Uploaded by

foysalshahrier.rabit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 13

INTRODUCTI

ON TO
MACROECON
OMICS
A Comprehensive
Overview of
Macroeconomic Concepts
What is Macroeconomics?

Macroeconomics is the branch of economics that studies the behavior,


performance, and structure of an economy as a whole.

It focuses on large-scale economic factors, such as:


● Gross Domestic Product (GDP)
● Inflation
● Unemployment rates
● National income and growth
Macroeconomic Goals
01
ECONOMIC
GROWTH

● Aim to increase the overall production of goods and services.


● Measured by the rise in GDP.
02
FULL
EMPLOYMENT

● Achieving the lowest possible unemployment rate without


causing inflation.
● Promotes a stable and productive labor market.
Macroeconomic Goals
03
PRICE
STABILITY

● Control inflation and avoid deflation.


● Ensures the purchasing power of the currency remains consistent.
04
EQUITABLE
DISTRIBUTION OF
INCOME

● Reduce economic inequalities.


● Aim to provide equal opportunities and reduce the income
gap between rich and poor.
Macroeconomic Policies
01
Fiscal Policy

● Expansionary vs. Contractionary


● Budget Deficits & Surpluses

02
Monetary Policy

● Interest Rates
● Money Supply
● Open Market Operations
Macroeconomic Policies
03
International
Economic
Policy

● Trade Policy (Tariffs, Quotas)


● Exchange Rate Policy
● Foreign Direct Investment

04
Incomes Policy

● Wage-Price Spirals
● Income Distribution
● Productivity and Efficiency
tHE bUSINESS CYCLE

❏ The business cycle refers to the fluctuations in economic activity over time.
❏ PHASES: A
PE
K

RE
ON CES
SI
LEVEL OF REAL

ROU

NSI
T
GH
EXPA
OUTPUT

ON

OU TIM
TR
GH E
bUSINE 0
SS 1 PROSPERIT 02 RECESSION
CYCLE
Y
Economic growth at its highest; Decline from the peak;
high employment and spending. reduced spending and rising
unemployment.

03 DEPRESSION 04 RECOVERY

Lowest economic activity; Economy starts improving;


severe downturn with high increasing production and
unemployment. employment.
AGGREGATE DEMAND [Ad]

Aggregate Demand (AD) represents the total demand for goods and
services in an economy.

Factors Influencing AD:


● Consumer spending
● Business investment
● Government spending
● Net exports
AGGREGATE supply [As]

Aggregate Supply (AS) represents the total output of goods and


services an economy can produce.

Short-Run vs. Long-Run AS:


● Short-Run AS: Influenced by production costs and external factors.
● Long-Run AS: Reflects the economy's maximum sustainable output.
Why know macroeconomic goals
& instruments

Information
decisions

Helps with personal finance


choices. Empowers
advocacy

Increases awareness of
Understand economic policies.
economic
impact

Affects daily life (inflation,


interest rates).
conclusion
Macroeconomics examines
the broader economic trends
and policies that influence
growth, employment, and
stability. By understanding
these key concepts, we can
better manage the economy
and address challenges
effectively.
Team members

AUTHOR Year Title of the publication. Publisher

AUTHOR Year Title of the publication. Publisher

AUTHOR Year Title of the publication. Publisher

AUTHOR Year Title of the publication. Publisher

AUTHOR Year Title of the publication. Publisher

You might also like