MACROECONOMICS

What is macroeconomics?

• Studies the behaviour of individuals & society in the distribution

• Studies individual economic units, such as household, a firm and goverment

• Studies the aggregate behavior of the entire economy.

• Public choices, business choices and personal choices.

Macroeconomic Goals

• Unemployment

• Equitable distribution of income

• Economic Stagnant

• Unstability of price

Factors that influence national income is political stability​

• True

• False

Expansionary Fiscal Policy, what will happened?

• Tax decrease, Goverment spending decrease

• Tax Increase, Goverment spending Decrease

• Tax increase, Goverment spending increase

• Tax decrease, Goverment spending increase

During inflation, goverment used?

• Expansionary Fiscal Policy

• Contractionary Fiscal Policy

• Reduciary Fiscal Policy

• Fiduciary Monetary Policy

Monetory Policy consist of

• Interest rate & Taxation

• Goverment spending & Interest Rate

• Goverment spending & Taxation

• Interest rate & Control money supply

During expansionary monetory policy?

• Interest rate increase, money supply decrease

• Interest rate decrease, money supply increase

• Interest rate decrease, money supply decrease

• Interest rate increase money supply increase

During contractionary monetory policy?

• Interest rate increase, money supply decrease

• Interest rate increase, money supply increase

• Interest rate decrease, money supply decrease

• Interest rate decrease, money supply increase

Uses of national income

• Standard of living comparison

• Political stability

• Level of specialization

• Quality & quantity of factors of production