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Introduction To Macroeconomics: Principles of Economics
Introduction To Macroeconomics: Principles of Economics
INTRODUCTION TO
MACROECONOMICS
Economic Growth
Price Stability
FOUR
MAJOR
GOALS
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PRINCIPLES OF ECONOMICS Third Edition All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 10– 11
MACROECONOMIC GOALS
Economic Growth
Taxes
Taxes
GOVERNMENT
Transfer
payment, Payments
wages
Export Export
Import Import
AGGREGATE DEMAND
P*
- Refers to the total
quantity of output
demanded at alternative
AD price levels during a given
time period, ceteris
paribus.
Y* Yf Real GDP
B A
AD1
AD2 AD0
Quantity
Quantity
B A
AD1
AD2 AD0
Quantity Quantity
Shifts of the aggregate demand curve to Shifts of the aggregate supply curve
right (AD0 to AD1) to right (AS0 to AS1)
Income increases Interest rate decreases
Interest rate decreases Cost decreases
Government expenditures increases
Productivity increases
Taxation decreases
Wealth increases Taxation decreases
Investment increases