Lecture Outline: The Macroeconomic Environment in a Global Context
Recent developments in the global economy illustrate somewhat emphatically the importance of economic factors in determining the fortunes of the business sector. This lecture considers model of the macroeconomy and shows how it can be used to analyse these some of these changes as well as predict the impact on the business environment. Detailed by 代写论文 !
At the outset it is important to distinguish between microeconomics and macroeconomics. Microeconomics is concerned with the analysis if individual decisions of firms and consumers and how they interact in markets. Macroeconomics is concerned with the operation of the economy as a whole. Aspects of the microeconomy are considered in later lectures; this lecture looks solely at the macroeconomy. It considers:
· the main macroeconomic variables;
· the difference between the long-run trend in the macroeconomy and short-run fluctuations;
· the basic elements of the aggregate supply and aggregate demand (AS-AD) model;
· the effects of shocks to the economic system as analysed using the model.
The macroeconomy is made up of complex interactions between different economic agents - firms, consumers, government, overseas producers and consumers, employees and so on. Macroeconomics aggregates the behaviour of individuals into measurable variables, the so-called macroeconomic variables, and looks for relationships between them. Any regularities that are identified form the basis of explanations of how the economy works and are thus used for building models and making predictions about what factors drive the economy and determine economic performance. In short, macroeconomics is founded on the view that it is possible to treat the economy as a system and to identify consistencies and regularities in the behaviour of economic aggregates. The corollary is that it is possible to make forecasts of the future course of economic variables.