Sunday, October 9, 2011

Macro Economy

Macroeconomic or macroeconomics is the study of the overall economy. Macroeconomics explain the economic changes that affect many households (household), companies and markets. Macro economy can be used to analyze how best to influence policy targets such as economic growth , price stability , employment and the achievement of a balance sheet is continuous.
Origins of Macroeconomic ConceptsUntil 1930 most of the economic analysis focused on industries and companies. When there is the Great Depression in the 1930s, and with the development of the concept of national income and product statistics, the field of macroeconomics began to expand. At that time, the ideas which are mainly derived from John Maynard Keynes , who uses the concept of aggregate demand to explain fluctuations between production and unemployment rates, very influential in the development of this field. Keynesianism is based on his ideas.Analytic ApproachTraditional distinction is between two different approaches to economics: Keynesian economics, focusing on demand, and supply-side economics (or neo-classical) that focus on supply. Both of them can not walk alone, but this problem only emphasis.

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