The massive postwar reconstruction effort of the preceding decade led to vibrant growth in Europe and Asia. Although Dylan probably did not have global production in mind, the world economy witnessed some truly unimaginable changes during the ensuing half century. Some low-income countries with chronic development problems started growing much faster and eventually became major contributors to global growth.
Is macroeconomics the same for all countries? What three main differences separate micro- and macroeconomics? First, microeconomics studies individual components, whereas macroeconomics studies the economy as a whole. Second, controversy aside, government involvement in microeconomics is relatively small, and relegated to public goods, regulation, and welfare.
But, controversy notwithstanding, government involvement in macroeconomics is rather substantial, nearly total; it is only government that makes and enforces monetary and fiscal policy.
Third, whereas microeconomics has been around since the mid eighteenth century, macroeconomics began only as a reaction to the Great Depression of the s. Who introduced macroeconomics, and what was its major objective?
John Maynard Keynes, an English economist, hence macroeconomics is also referred to as Keynesianism. Keynes argued that by itself the market is unable to generate enough savings capital to sustain investment at full employment levels; and that this could be achieved only with the periodic sharp increase in government spending.
Why is macroeconomics said to be a typical public good? Second, the effects of a stable economy are enjoyed by all, producers: What are economic indicators of macro-economic variables; and why is knowledge about them important?
Macroeconomic variables are indicators or main signposts signaling the current trends in the economy Like all experts, the government, in order to do a good job of macro-managing the economy, must study, analyze, and understand the major variables that determine the current behavior of the macro-economy.
So government must understand the forces of economic growth, why and when recession or inflation occur, and anticipate these trends, as well as what mixture of policy will be most suitable for curing whatever ills the economy.
Of the many economic indicators listed on page of your book, you will be tested on knowledge about these twelve: How is growth measured?
It is measured over time relative to the performance of the economy over the exact same period in the immediate past, such as the economic calender year, that is, Oct.
Why is growth important? In which three ways can growth be defined? GNP stands for the Gross National Product, a measurement of the annual economic productivity of the property and labor of all but only citizens of a country regardless where this activity occurs in the world.
GDP stands for the Gross Domestic Product, a measurement of the annual productivity of the property and labor of all citizens and foreign residents within the geographic borders of a country including its foreign territories such as embassies and purchased military bases abroad.
Whether you measure the GDP by spending, by production, or by income, be sure to count final market value of goods and services only once.
Be sure to exclude: Second, GDP exaggerates actual improvement in the standard of living.JSTOR is a digital library of academic journals, books, and primary sources. China's Development: Assessing the Implications ()CPDS Home Contact: Structural Incompatibility Puts Global Growth at Risk Are East Asian Economic Models Sustainable?
Babes in the Asian Woods Beyond 'The China Choice' Reading China's Mind? Comments on Australia's Strategic Edge in Friction between China and Japan: The End of the Asian 'Century'?
Featured. McKinsey Academy Our learning programs help organizations accelerate growth by unlocking their people's potential. A macroeconomic factor can include anything that influences the direction of a particular large-scale market; for example, fiscal policy and various regulations can impact the economy of a state or nation and can even have international implications.
Not all macroeconomic factors are negative; some promote economic growth.
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Table of Contents. Introduction; Tools and Measures; Measures of National Income; Need for New Theory; Measures and Indicators; Characteristics of a Successful Indicator.