Summary
Summary NOTES
- Course
- Macroeconomics (ECOH612)
- Institution
- North-West University (NWU)
Summary study book Introducing Advanced Macroeconomics of - ISBN: 9781283386081 (MACRO NOTES)
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
Content preview
SASHA-LEE NELSON ECON 612 0737692353ECON 612
CHAPTER 1
What is Macroeconomics?
Macroeconomics is the field of economics that studies the behaviour of the aggregate economy.
Macroeconomics examines economy-wide phenomena such as changes in e.g. unemployment,
natural income and rate of growth.
Macroeconomics for the long-run and the short-run:
Long-run macroeconomics is about understanding the trends in the most important
macroeconomic series for e.g. GDP, consumption, investment and unemployment.
Thus, seeking explanations for long-run income levels, economic growth and structural
unemployment.
Short-run macroeconomics is about understanding the annual or quarterly fluctuations around
trend in the most important macroeconomic series, thus seeking explanations for business cycles.
Macroeconomic theory for the short-run:
Exogenous Shocks:
Sudden abrupt influences in the economy coming from changes in preferences, technology and
economic policies
There a positive exogenous shocks and negative exogenous shocks:
Positive exogenous shocks could either be a supply shock, like sudden increases in the
productivity of resources, or a demand shock like a sudden rise in domestic consumption.
Short-run nominal rigidity
Some period after the occurrence of a shock during which prices/wages are sticky.
In the case of rigid money wage, it is fixed in the short-run and in the long-run it falls away. E.g.
workers do not negotiate their wage rate every day as it is a time consuming process etc.
Expectational errors
Some period after the occurrence of the shock during which some prices are different from what
was expected before the shock.
Macroeconomic theory for the long-run:
Modelling assumptions of macroeconomics for the long-run:
In macroeconomic theory for the long-run, intended to explain trends of economic variables over
the long-run, the economy is analysed as if:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller leratontuli. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R163,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64450 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 15 years now