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Macroecnomics

Satisfactory Essays
1. Overview of the Modern Macroeconomy 1.1 Essential Structure (1)
Scarcity in Resources  Choice = Decision Making = Tradeoff Market/Price Mechanism  Exchange = Swap = Transaction = Trading
Factor Demanders (Employers)

Micro Partial Equilibrium  Macro General Equilibrium

Factor Markets
Labor etc. Wage etc.

Factor Suppliers (Employees)

Production Cost Firms

(Labor) Income Intervention by Policy and Regulation Government
Transfer Income Tax

Subsidy Sales Tax

Households

Intertemporal Financial System [Markets + Institutions]
Funds Demanders (Investors/Borrowers)  Funds Suppliers (Savers/Lenders)
Real Sector Flows Money Sector Flows

Sales Revenue
Goods Suppliers (Producers) q = f (L, K, M, T, E)
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1~2, 27

Macroeconomics [1] by C-J Huang

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1. Overview of the Modern Macroeconomy 1.2 Key Indicators (7)

• Utility Function U = Stock = Level 1. U MU = Change in Stocks = Flow  2. U Change in Flows = Double   = S • Stock Price: $100  $120  $132 1. The stock price finally rises to/at $___. 2. The stock price finally rises by $___. 3. The stock return changes by ___%. 4. The inflation rate is falling…
Macroeconomics U1: Blanchard Chs. 1~2, 27

1. Overview of the Modern Macroeconomy 1.3 World Tour (1) US 2006: Population = 301M [TBMK]; Per Capita GDP = US$43,800 1/5 World GDP Created and Enjoyed by 1/20 World Population T1-1 Output Growth Unemployment Inflation 1970– 2006 3.1 6.2 4.0 1996– 2006 < 3.4 > 5.0 > 2.0 2006 3.3 4.6 2.9 2007 2.1 4.6 2.6 2008 2.5 4.8 2.2

Note: Inflation Based on the GDP Deflator; Data by OECD [75% World GDP].
Productivity Growth by Output per Hour Worked

New Economy by IT  Global Warming

Macroeconomics U1: Blanchard Chs. 1~2, 27

Macroeconomics [1] by C-J Huang

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1. Overview of the Modern Macroeconomy 1.3 World Tour (2) EU 2006: Population = 496M;
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