《初级宏观经济学》（英文版）Chapter 1 Introduction

Chapter 1 Introduction 友学经济学院

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Logion Economists"on some level are mathematicians, historians, diplomatists honest as artist philosophers.al hey are as indifferent and John maynard Keynes 6 When economists are analyzing economical affairs or public policies, they are always remembering different models。” Gregory Mankiw 友学经济学院

Logion  Economists” on some level are mathematicians, historians, diplomatists, philosophers…and they are as indifferent and honest as artists”. ——John Maynard Keynes  “When economists are analyzing economical affairs or public policies, they are always remembering different models。 ” ——Gregory Mankiw

Main contents o 1.1 Objectives and scopes of macroeconomIcs o 1.2 Chinese macroeconomic facts o 1.3 Nature of macroeconomics Analysis o 1.4 Brief history of Macroeconomics o 1.5 Methodology of Macroeconomics o 1.6 Features of this Text 友学经济学院

Main Contents  1.1 Objectives and scopes of macroeconomics  1.2 Chinese macroeconomic facts  1.3 Nature of Macroeconomics Analysis  1.4 Brief history of Macroeconomics  1.5 Methodology of Macroeconomics  1.6 Features of This Text

1.1 Objectives and Scopes of Macroeconomics o Microeconomics: To take the behaviors of single corporation or familiar as research objects, which aims to know the relationship between demand-supply behaviors and price changes Macroeconomics To focus on operational situation of the whole economy in one country and how the government uses economical policies to influence the operation of the whole economy in one country 友学经济学院

1.1 Objectives and Scopes of Macroeconomics  Microeconomics: To take the behaviors of single corporation or familiar as research objects, which aims to know the relationship between demand-supply behaviors and price changes. Macroeconomics： To focus on operational situation of the whole economy in one country and how the government uses economical policies to influence the operation of the whole economy in one country

1.1 Objectives and Scopes of Macroeconomics Content One: Economic Growth in the Long Term o Growth resources Increase of Labor force Average person productivity increase 友学经济学院

1.1 Objectives and Scopes of Macroeconomics Content One： Economic Growth in the Long Term  Growth resources ❖ Increase of Labor Force ❖ Average person productivity increase

U.S. average actual GDP from 1900 to2000 Real GDP per person First oil price shock (1996 dollars) World Great World Korean Vietnam /Second oil price shock 35000 War/ Depression War l War War 30000 20.000 10.000 5.000 3.000 19001910192019301940195019601970198019902000 Year 友学经济学院

U.S. average actual GDP from 1900 to 2000

1.1 Objectives and Scopes of Macroeconomics Content TWo: Business Cycle o Different characteristics of business cycles o Various explanations of periodic fluctuation 友学经济学院

1.1 Objectives and Scopes of Macroeconomics Content Two： Business Cycle  Different characteristics of business cycles  Various explanations of periodic fluctuation

1.1 Objectives and Scopes of Macroeconomics Content Three: Unemployment ⊙ Basic concepts Those who have the working ability and look for works but can not get them o Measurement Unemployment populace is divided by total labors 友学经济学院

1.1 Objectives and Scopes of Macroeconomics Content Three： Unemployment  Basic concepts ❖ Those who have the working ability and look for works but can not get them  Measurement ❖ Unemployment populace is divided by total labors

Americans unemployment ratio from 1900to2000 Percent unemployed World Great World Korean Vietnam irst oil price shock War/ Depression War 1/ Wa W Second oil price shock 15 9001910192019301940195019601970198019902000 Ye eal 友学经济学院

Americans’ unemployment ratio from 1900 to 2000

1.1 Objectives and Scopes of Macroeconomics Content Four: Inflation ⊙ Basic concepts e Prices of most commodities and services keep increasing during certain time in one economy o Reasons Issued too many currencies, overmuch demands for investment and consumption, increase of cost such as Wages 友学经济学院

1.1 Objectives and Scopes of Macroeconomics Content Four：Inflation  Basic concepts ❖ Prices of most commodities and services keep increasing during certain time in one economy.  Reasons ❖ Issued too many currencies、overmuch demands for investment and consumption、increase of cost such as wages