This document provides an overview of key concepts in macroeconomics. It defines macroeconomics as dealing with the performance and structure of an economy as a whole, rather than individual markets. It discusses important macroeconomic variables like output, income, unemployment, inflation, aggregate demand and supply. It also covers concepts like the consumption function, national income, GDP, GNP, economic growth, and the limitations of macroeconomic analysis.
Class Lecture Notes Measuring the MacroeconomyProfessor Shari Lyman,.docxmccormicknadine86
Class Lecture Notes Measuring the MacroeconomyProfessor Shari Lyman, Ph.D.
GDP Measures
GDP is Gross Domestic Product
GDP is the value of all final goods and services produced within a country’s borders by its own citizens or foreign citizens in a given time period.
GNP is Gross National Product
GNP is the value of all final goods and services produced by a country’s citizens within the country’s borders or in foreign lands in a given time period. http://www.diffen.com/difference/GDP_vs_GNP
Intermediate goods are used to produce other goods. For example, when Pizza Hut buys cheese to produce pizzas, the cheese is an intermediate good.
Final goods are purchased by the end user. When the Lyman household purchases cheese, the cheese is a final good.
GDP is represented by the variable Y in macroeconomic calculations.
The formula for GDP is:
Y=Consumption(C)+Investment(I)+Government Expenditures(G)+Net Exports(X-M).
Consumption (durable and non-durable goods and services for individual household consumption)
Investment (Consumption of new physical capital and new housing such as factories, machines, tools, transportation systems, new houses, etc.) Investment is purchased using financial capital instruments.
Government expenditures (all Federal, State, and Local government purchases from paper clips to aircraft carriers).
Net Exports (Trade Balance=Exports-Imports)
Macroeconomic Measures introduces the student to 3 different methods of measuring GDP:
1.the incomes approach (simplified circular flow model-resource flow approach)
2.the expenditures approach (simplified circular flow model (D) money flow approach)
3.the output approach (simplified circular flow model (S) product flow approach).
Incomes Approach (Input/resource approach)
GDP (also known as national income which is indicated by Y) is equal to the inputs used in the production process. The inputs include:
land in the form of rent
labor in the form of wages
capital in the form of interest
entrepreneurship in the form of profit.
Y = rent + wages + interest + profit.
Expenditures Approach (Demand side approach)
GDP (also known as aggregate demand (AD) which is indicated by Y) is equal to the total output demanded in the economy. The outputs include:
consumption
investment
government expenditures
net exports
Y=Consumption(C)+Investment(I)+Government Expenditures(G)+Net Exports(X-M)
Output Approach (Supply side approach)
GDP (also known as national output which is indicated by Y) is equal to the outputs supplied to the economy. The outputs include:
household goods (durable and nondurable goods and services)
investment goods (new housing and capital)
government (durable and nondurable goods and services)
net exports (goods for export minus goods imported)
Y = Household (C) + Firm and HH (I) + (G) + Net Exports (X-M)
The Keynesian Consumption (Spending) Multiplier
The Keynesian Consumption Multiplier is based on the assumption that for each additional dollar a household receives some ...
Running head Fundamentals of Macroeconomics 1Fundamentals.docxcharisellington63520
Running head: Fundamentals of Macroeconomics
1
Fundamentals of Macroeconomics
2
Fundamentals of Macroeconomics
Week 2 Assignment
ECO/372
Macro Economics is a study which is concerned with the economy as a whole and the level of total output which is also referred to as national income is a very important variable in any economy. National income measures the value of an output produced in an economy over a period of time and the policy makers should be aware of the level of economic activity taking place within the country on behalf of the nationals.
One of the most important objectives of the government is to increase the level of the rate of economic growth which is possible only be measuring the national income. The main uses of the national income statistics are:
1. It shows the current allocation of resources,
2. It helps the government in economic planning,
3. It helps measures the country’s standard of living, and
4. It helps in the comparison of the living standard between different countries.
There are some important concepts of National Income such as Gross Domestic Product, Gross National product, net National product and The GDP per capita.
Gross domestic product: “GDP is the total value of all output produced using resources located within the economy over a given period of time”. It refers to the market value of all final goods and services produced within a country in a given period (O'Sullivan, Arthur).
GDP measures the annual value of all economic activity taking place within the economy and the GDP measures are on a value added basis in order to avoid the problem of double counting. There are three ways of calculating the GDP but the results of all the three methods should be the same. They are:
· The Output Method.
· The Income Method.
· The Expenditure Method.
Nominal GDP: Also known as the money GDP is measured in terms of the prices operating in the year in which the output is produced. it is sometimes referred to as GDP at market prices. It can give a wrong impression about the performance of the economy, because of the changes in the value of money which depends on the price level, which is subject to changes. Normally the Nominal GDP converted into Real GDp which is a measure of adjustment for inflation is used to calculate the National performance. Real GDP therefore is: money GDP/ the price index of the current year X Price index of the base year or money GDP/ GDP deflator of the current year X Price index of the base year (HM Treasury, Background information on GDP and GDP deflator).
Unemployment rate: Employment is the total number of people with a job which includes the employees, businessmen and self employed people. The number employed may change over time due to many factors. While unemployment refers to those people who have registered, able, available and willing to work at the going wage rate at any suitable job but cannot find employment. Unemployment is measured at a point of time and.
Introduction
In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
Law of Gratitude: The Law of Gratitude states that you must show gratitude for what you have. By having gratitude, you speed your growth and success faster than you normally would. This is because if you appreciate the things you have, even if they are small things, you are open to receiving more.
Law of Attraction: The Law of Attraction states that if you focus your attention on something long enough you will get it. It all starts in the mind. You think of something and when you think of it, you manifest that in your life. This could be a mental picture of a check or actual cash, but you think about it with an image.
Law of Karma: the Law of Karma states that if you go out and do something bad, it will come back to you with something bad. If you do well for others, good things happen to you. The principle here is to know you can create good or bad through your actions. There will always be an effect no matter what.
Law of Love: the Law of Love states that love is more than emotion or feeling; it is energy. It has substance and can be felt. Love is also considered acceptance of oneself or others. This means that no matter what you do in life if you do not approach or leave the situation out of love, it won't work.
Law of Allowing: The Law of Allowing states that for us to get what we want, we must be receptive to it. We can't merely say to the Universe that we want something if we don't allow ourselves to receive it. This will defeat our purpose for wanting it in the first place.
Law of Vibration: the Law of Vibration states that if you wish on something and use your thoughts to visualize it, you are halfway there to get it. To complete the cycle you must use the Law of Vibration to feel part of what you want. Do this and you'll have anything you want in life.
For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow the reasons. Successful people don't sit around and say "I'll try," they say yes and act on it.
Chapter - 1
The Law of Attraction
The law of attraction is the most powerful force in the universe. If you work against it, it can only bring you pain and misery. Successful people know this but have kept it hidden from the lower class for centuries because th
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
2. Meaning & Definition:
According to Blaug, Mark, “Macroeconomics is a branch of economics dealing with the
performance, structure, behavior, and decision-making of an economy as whole rather than
individual markets. This includes national, regional, and global economies”.
“Macro Economics deals with aggregates of output, income, price level, consumption,
investment and savings”
Difference between Micro & Macro Economics
Micro Economics Macro Economics
Micro economics is the study of decisions that people
and businesses make regarding the allocation of
resources and prices of goods and services
Macroeconomics is the field of economics that studies the
behavior of the economy as a whole and not just on specific
companies, but entire industries and economies.
Studies the problems of individual economic units such
as a firm, an industry, a consumer etc.
Studies economic problems relating to an economy viz.
national income, total savings etc.
Studies the problems of price determination, resource
allocation etc
Studies the problems of economic growth, employment and
income determination etc
While formulating economic theories, micro economics
assumes that other things remain constant
Economic variables are mutually inter-related
independently
Micro economic study is what will be the consequence of
increase in salary of an individual will have on his or her
purchasing power
Macroeconomics study what will be the consequence of
higher inflation on growth of the economy or how rise in
gross domestic product will help in generating employment
opportunities.
3. Basic Macro Economic Concepts
Output and Income:
National output is the total value of everything a country produces in a given time
period. Since everything that produced and sold produces income, output and
are usually considered to be equivalent and the two terms are often used
interchangeable.
Output can be measured as total income, or it can be viewed from the production
and measured as the total value of final goods and services. Macroeconomic output
usually measured by Gross Domestic Product.
Unemployment:
The amount of unemployment in an economy is measured by the unemployment
rate, the percentage of workers without jobs in the labour force. The labour force
only includes workers actively looking for jobs. People who are retired, students are
excluded from the labour force.
4. Types of Unemployment
Structural unemployment occur throughout an economy. Structural unemployment is caused
by shifts in the economy, improvement in technology and workers' lack of requisite job skills,
which makes it difficult for workers to find employment
Frictional unemployment is a type of unemployment. It is sometimes called
search unemployment and can be based on the circumstances of the individual. It is time
between jobs when a worker is searching for a job or transitioning from one job to another
Cyclical unemployment: When the economy enters a recession, many of the jobs lost are
considered cyclical unemployment. For example, during the Great Depression, the
unemployment rate surged as high as 25%.
Seasonal unemployment occurs when people are not working because their jobs only exist at
some times of the year. Agricultural and construction workers are examples of this type of
unemployment.
Voluntary unemployment is defined as a situation where the unemployed choose not to
a job at the going wage rate
Involuntary unemployment occurs when those who are able and willing to work at the going
wage rate do not get work.
Demand deficient unemployment occurs when there is insufficient demand in the economy
5.
6. Demand-pull inflation is asserted to arise when aggregate demand in an economy
outpaces aggregate supply. It involves inflation rising as real gross domestic product rises
and unemployment falls, as the economy moves along the Phillips curve. This is
described as "too much money chasing too few goods."
Inflation
A general price level increase across the entire economy is above the full employment
level as called inflation. It can be measured by price indexes. Inflation can occur when
an economy becomes overheated and grows too quickly. (Too much of money
chasing too few goods)
7. Cost-Push Inflation
Cost-push inflation occurs when overall prices increase (inflation) due to
increases in the cost of wages and raw materials. Higher costs of
production can decrease the aggregate supply (the amount of total
production) in the economy. Since the demand for goods hasn't changed,
the price increases
8. Deflation
In economics, deflation is a decrease in the general price level of goods and
services. Deflation occurs when the inflation rate falls below 0% (a negative inflation
rate). Inflation reduces the value of currency over time, but deflation increases it.
Business Cycle:
The business cycle, also known as the economic cycle or trade cycle, is the downward
and upward movement of gross domestic product (GDP) around its long-term growth
trend. The length of a business cycle is the period of time containing a single boom
contraction in sequence
9. Aggregate Demand and Aggregate Supply:
The aggregate demand–aggregate supply model is a macroeconomic model that explains
price level and output through the relationship of aggregate demand and aggregate supply
10. Concept of National Income:
National income means the value of goods and services produced by a country during a financial year. Thus, it
is the net result of all economic activities of any country during a period of one year and is valued in terms of
money. The National Income is the total amount of income accruing to a country from economic activities in a
years time. It includes payments made to all resources either in the form of wages, interest, rent, and profits.
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and
services produced within the domestic territories of a country in a specific time period, often annually.
GDP = C + I + G + (X – M)
GDP at Market Price: it includes the final value of goods and services also includes indirect taxes and
excludes the subsidies given by the government.
GDP at factor cost: is the money value of goods and services based on the cost involved in the process of
production
GDP at Factor Cost= GDP at Market Prices-indirect taxes+subsidies
11. Gross National Product (GNP)
GNP is aggregate final output of citizens and businesses of an economy in a year
GNP=GDP+NFIA (Net Factor Income from Abroad)
NFIA= difference between income received from abroad for rendering factor services and
income paid towards services rendered by foreign nationals in the domestic country.
NDP
Net Domestic Product= GDP-Depreciation
Net National Product (NNP)
GDP-Depreciation+NFIA or GNP-Depreciation
Per Capita Income (PCI)
Per Capita Output
(PCO)
12. Significance of Macro Economics
1. It helps to understand the problems faced by the various countries
2. To understand the functioning of economic system
3. Helps in formulation of economic policies
4. It assists in dealing with the problem of allocation of goods and services
5. It helps in understanding the business cycle
6. It helps in analyzing the effects of inflation and deflation
7. It helps to analyze the GDP and economic growth of any nation
Economic growth
An increase in the production of economic goods and services, compared from one
period of time to another. It can be measured in nominal or real (adjusted for inflation)
terms
13. Limitations and Demerits of Macro Economics
1. No importance to Individual Units. Under macro economics, in
comparison to individual units, a group of units is given more
importance.
2. Again, macroeconomics suffers from excessive thinking in terms of
aggregates, as it may not be always possible to have the homogeneous
constituents.
3. It may, however, be remembered that macroeconomics deals with such
aggregates as aggregate consumption, saving, investment and income, all
composed of heterogeneous quantities. Money is the only measuring rod.
But the value of money itself keeps on changing, rendering economic
aggregates immeasurable and incomparable in real terms. As such, the
sum or average of heterogeneous individual quantities loses their
significance for accurate economic analysis and economic policy
4. Difficulty in Measuring Aggregates.
14.
15. The consumption function refers to income consumption relationship. It
is a “functional relationship between two aggregates, i.e., total
consumption and gross national income.” Symbolically, the relationship
is represented as, C= f (Y), where С is consumption, Y is income, and f
is the functional relationship. Thus the consumption function indicates a
functional relationship between С and Y, where С is the dependent and
Y is the independent variable, i.e., С is determined by Y. This
relationship is based on the ceteris paribus (other things being equal)
assumption, as such only income consumption relationship is
considered and all possible influences on consumption are held constant
16. Technical Attributes of the Consumption Function
The consumption function has two technical attributes or properties: (i) the
average propensity to consume (APC), and (ii) the marginal propensity to consume
(MPC).
Average Propensity to Consume
“The average propensity to consume may be defined as the ratio of consumption
expenditure to any particular level of income.” It is found by dividing consumption
expenditure by income, or APC = C/Y, where C = Consumption and Y = Income. It is
expressed as the percentage or proportion of income consumed
Marginal Propensity to Consume
“The marginal propensity to consume may be defined as the ratio of the change in
consumption to the change in income or as the rate of change in the average
propensity to consume as income changes.” It can be found by dividing change in
consumption by a change in income, or MPC = DC/DY, where D denotes change
(increase or decrease), C = Consumption and Y = Income.