宏观经济学英文课件 01.ppt

Learning objectives This chapter introduces you to the issues macroeconomists study the tools macroeconomists use some important concepts in macroeconomic analysis Important issues in macroeconomics Why does the cost of living keep rising? Why are millions of people unemployed, even when the economy is booming? Why are there recessions? Can the government do anything to combat recessions? Should it?? Important issues in macroeconomics What is the government budget deficit? How does it affect the economy? Why does the U.S. have such a huge trade deficit? Why are so many countries poor? What policies might help them grow out of poverty? U.S. Gross Domestic Product in billions of chained 1996 dollars U.S. Gross Domestic Product in billions of chained 1996 dollars Why learn macroeconomics? The macroeconomy affects society’s well-being. example: Unemployment and social problems Unemployment and social problems Each one-point increase in the unemployment rate is associated with: 920 more suicides 650 more homicides 4000 more people admitted to state mental institutions 3300 more people sent to state prisons 37,000 more deaths increases in domestic violence and homelessness Why learn macroeconomics? The macroeconomy affects society’s well-being. example: Unemployment and social problems Unemployment and earnings growth Interest rates and mortgage payments Why learn macroeconomics? The macroeconomy affects society’s well-being. example: Unemployment and social problems Inflation and Unemployment in Election Years year U rate inflation rate elec. outcome 1976 7.7% 5.8% Carter (D) 1980 7.1% 13.5% Reagan (R) 1984 7.5% 4.3% Reagan (R) 1988 5.5% 4.1% Bush I (R) 1992 7.5% 3.0% Clinton (D) 1996 5.4% 3.3% Clinton (D) 2000 4.0% 3.4% Bush II (R) Economic models …are simplied versions of a more complex reality irrelevant details are stripped away Used to show the relationships between economic variables explain the economy’s behavior devise policies to i