宏观经济学名词解释（Explanation of terms in macroeconomics）.docVIP

宏观经济学名词解释（Explanation of terms in macroeconomics） Explanation of macro and micro economics terms Microcosmic： Economics - a social science that studies how to achieve optimal allocation of scarce resources in order to maximize human satisfaction. The scarcity of resources, opposed to unlimited human needs diversity in terms of economic resources quantity is always relatively insufficient, when access to pay the price. Normative analysis -- the study of what economic activities should be and how social and economic problems should be solved. Empirical analysis describes what economic phenomena are and how social and economic problems are actually solved. Demand the quantity of a commodity or service that consumers are willing and able to purchase at a certain price. Change in demand the change in demand for a commodity caused by the change in the price of a commodity. The change of demand level -- the change of demand caused by other factors under the condition of constant commodity price. Law of demand -- the changing relationship between the price and demand of commodities. Supply the quantity that a producer is willing and able to provide for a commodity or service at a given moment and at various possible price levels. Law of supply -- commodity price is proportional to supply. Equilibrium price -- the price of a commodity in which the demand price is consistent with the supply price, that is, the quantity of demand equals the quantity supplied. Equilibrium quantity the quantity of supply and demand when demand price equals supply price is called equilibrium quantity. Price elasticity of demand - the change in the price of a commodity or service due to its own demand when other conditions remain unchanged. Cross price elasticity of demand - the degree to which another commodity or labor demand changes when the price of a commodity or service changes under the condition that other conditions remain unchanged. Demand income elasticity - the change of consumer incom