Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
INTRODUCTION TO
MACROECONOMICS
DEFINATION OF MACROECONOMICS
Macroeconomics is a part of economic
analysis that deals with aggregate
behavior and choiceso...
MICROECONOMICS VS
MACROECONOMICS
MICROECONOMICS MACROECONOMICS
Studies individual income Studies national income
Analyzes ...
MACROECONOMIC GOALS
FULL EMPLOYMENT
The situation in which all available resources in
the economy are employed to produce goods
and services
F...
PRICE STABILITY
The objective of the nation is to keep its
inflation rate as low as possible maintaining
price stability.
...
ECONOMIC GROWTH
To achieve economic growth, the economy
must be operating at maximum capacity.
Economic growth refer to an...
EQUITABLE DISTRIBUTION OF
INCOME
Most of the nation try to narrow the gap between
the higher income and the lower income g...
AGGREGATE
DEMAND
AGGREGATE
SUPPLY
Total quantity of
output demanded.
Total quantity of
output supplied.
Total demand for
g...
Macroeconomic goals
Macroeconomic goals
Macroeconomic goals
Macroeconomic goals
Macroeconomic goals
Upcoming SlideShare
Loading in …5
×

Macroeconomic goals

25,781 views

Published on

  • Be the first to comment

Macroeconomic goals

  1. 1. INTRODUCTION TO MACROECONOMICS
  2. 2. DEFINATION OF MACROECONOMICS Macroeconomics is a part of economic analysis that deals with aggregate behavior and choicesof the entire economy. Example : National income and Inflation
  3. 3. MICROECONOMICS VS MACROECONOMICS MICROECONOMICS MACROECONOMICS Studies individual income Studies national income Analyzes demand and supply of labor Analyzes total employment in the economy Deals with households and firms decisions Deals with aggregate decisions Studies individual prices Studies overall price level Analyzes demand and supply of goods Analyzes aggregate demand and aggregate supply
  4. 4. MACROECONOMIC GOALS
  5. 5. FULL EMPLOYMENT The situation in which all available resources in the economy are employed to produce goods and services Full employment does not mean 100 percent of the working labor force. There are always some people who are voluntarily unemployed as a result of being dissatisfied with their current jobs and resigning to find another job.
  6. 6. PRICE STABILITY The objective of the nation is to keep its inflation rate as low as possible maintaining price stability. Inflation occurs when there is an increase in the overall price level. Inflation can reduce the purchasing power of consumers.
  7. 7. ECONOMIC GROWTH To achieve economic growth, the economy must be operating at maximum capacity. Economic growth refer to an increase in the full production output level of a nation over time
  8. 8. EQUITABLE DISTRIBUTION OF INCOME Most of the nation try to narrow the gap between the higher income and the lower income groups. This is to ensure that all people are equal in terms of the standard of living. One of the method of achieving an equitable distribution of income is taxation. When taxes are imposed, the higher income groups pay a higher tax to the government.
  9. 9. AGGREGATE DEMAND AGGREGATE SUPPLY Total quantity of output demanded. Total quantity of output supplied. Total demand for goods and service. Total supplied for goods and service.

×