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Macroeconomics

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by

alric chong

on 17 July 2009

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Transcript of Macroeconomics

Macroeconomics Government policy the study of a national economy 5 main variables economic growth employment price stability external stability income distribution a steady rate of increase of national output a low level of unemployment a low and stable rate of inflation a favourable balance of payments position an equitable distribution of income use of government policy: 1. stimulate or 2. dampen economic activity when the government is worried about pressures inflationary concern about the economy's total output goal to explain the economic changes that affect households,
firms, and
markets
simultaneously implications when national product rises
when interest rates rises
when price level rises
when unemployment rises movements in these economic
are strongly associated with the
economic well being of most
individuals aggregates health of the sectors in which they work prices of the goods they purchase associations an introduction to
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