Finance English 1.pptVIP

Foreign Languages Department Shaoxing UniversityBy Ma Ke-yunJanuary 8th, 2011Mobile Email:marco663@ Unit OneBrief Introduction to Macroeconomics Macroeconomics is the study of the entire economy in terms of the total amount of goods and services produced, total income earned, the level of employment of productive resources, and the general behavior of prices. Macroeconomics can be used to analyze how best to influence policy goals such as economic growth, price stability, full employment and the attainment of a sustainable balance of payments. Macroeconomics - analysis of the behavior of an economy as a whole. Microeconomics is the study of aggregate economic variables such as national income, employment, interest rates, exchange rates, and prices. Often because of aggregation, index numbers are used to represent macroeconomic variables. Examples are the unemployment rate, the trade-weighted exchange rate, and the consumer price index. Microeconomics studies how individuals and businesses make decisions and how these decisions affect the prices and output of goods and services. In contrast, macroeconomics is the study of aggregates of individuals, prices and output for whole markets. Microeconomics - analysis of the behavior of individual decision-making units (individuals, households, firms). 2. The Gross National Product (GNP) is the total dollar value of all final goods and services produced for consumption in society during a particular time period. Its rise or fall measures economic activity based on the labor and production output within a country. The figures used to assemble data include the manufacture of tangible goods such as cars, furniture, and bread, and the provision of services used in daily living such as education, health care, and auto repair. Intermediate services used in the production of the final product are not separated since they are reflected in the final price of the goods or service. The GNP does include