Economics- Macro Economics, Study notes of Economics

Download Economics- Macro Economics and more Study notes Economics in PDF only on Docsity! ©) Macro economics 3 : ) \  Macroeconomic Objectives • Distinction between microeconomics and macroeconomics • The major macroeconomic issues – economic growth – unemployment – inflation – balance of payments and exchange rates • balance of payments deficits and surpluses • exchange rate movements Economic growth (average % per annum), Unemployment (average %), Inflation (average % per annum) The circular flow of income The interdependence of goods markets and factor markets fig FIRMS (suppliers of goods and services, demanders of factor services) HOUSEHOLDS (demanders of goods and services, suppliers of factor services) The interdependence of goods and factor markets The Circular Flow of Income • Withdrawals – net saving – net taxes – import expenditure • Injections – investment – government expenditure – export expenditure fig Factor payments Consumption of domestically produced goods and services (Cd) The circular flow of income Firms Households fig Factor payments Consumption of domestically produced goods and services (Cd) Investment (I) Government expenditure (G) Export expenditure (X) BANKS, etc Net saving (S) GOV. Net taxes (T) ABROAD Import expenditure (M) The circular flow of income WITHDRAWALS INJECTIONS