likeaneconomist(宏观经济学-加州大学-詹姆斯·布.pptVIP

CHAPTER 3 Thinking Like an Economist Questions Is economics a science? What do economists mean by a model? Why do economists use mathematical models so much? What patterns and habits of thought must you learn to successfully think like an economist? Economics is a social science focuses on human beings and how they behave debates within economics last longer than those in natural sciences less likely to end in consensus economists are unable to undertake large-scale experiments the subjects studied by economists--people-- have minds of their own expectations of the future play an important role The Importance of Expectations: An Example The stock market crash of 1929 changed what Americans expected about the future of the economy Figure 3.1 - The Stock Market, 1928-1932 Economics is a quantitative science uses arithmetic to measure economic variables of interest uses mathematical models to relate economic variables of interest involves a particular way of thinking about the world using unique technical language a specific set of data Economists use a special set of analogies and metaphors to describe the functioning of the macroeconomy curves “shift” money has a “velocity” the central bank “pushes the economy up the Phillips curve” Figure 3.2 - Pushing the Economy Up the Phillips Curve Dominant Concepts the image of the “circular flow of economic activity” the use of the word “market” the idea of “equilibrium” use of graphs and diagrams equations depicted by geometric curves situations of equilibrium occur where curves cross changes in economy demonstrated by shifts in the curves The Circular Flow patterns of spending, income, and production flowing through the economy flow of purchasing power The Circular Flow “income side” firms buy the factors of production from households money payments flow from firms to households “expenditure side” households buy goods and services from firms money payments flow from households to firms Figure 3.3 - The Circular Flow Di