CHAPTER ONE The Science of Macroeconomics macroeconomics N.Gregory Mankiw College of Management,HUST
macroeconomics N. Gregory Mankiw CHAPTER ONE The Science of Macroeconomics macro College of Management, HUST
Learning objectives This chapter introduces you to the issues macroeconomists study the tools macroeconomists use some important concepts in macroeconomic analysis CHAPTER 1 The Science of Macroeconomics slide 1
CHAPTER 1 The Science of Macroeconomics slide 1 Learning objectives This chapter introduces you to ▪ the issues macroeconomists study ▪ the tools macroeconomists use ▪ some important concepts in macroeconomic analysis
Content 1.Important issues in macroeconomics 2.Why Learn Macroeconomics 3.Economic Models 4.Price:Flexible Versus Sticky 5.Chapter Summary CHAPTER1 The Science of Macroeconomics slide 2
CHAPTER 1 The Science of Macroeconomics slide 2 Content 1. Important issues in macroeconomics 2. Why Learn Macroeconomics 3. Economic Models 4. Price: Flexible Versus Sticky 5. Chapter Summary
Important issues in macroeconomics Why does the cost of living keep rising? Why are millions of people unemployed,even when the economy is booming? Why are there recessions? Can the government do anything to combat recessions? Should it?? CHAPTER 1 The Science of Macroeconomics slide 3
CHAPTER 1 The Science of Macroeconomics slide 3 Important issues in macroeconomics ▪ Why does the cost of living keep rising? ▪ Why are millions of people unemployed, even when the economy is booming? ▪ Why are there recessions? Can the government do anything to combat recessions? Should it?? 1
Important issues in macroeconomics What is the government budget deficit?How does it affect the economy? Why does the U.S.have such a huge trade deficit? Why are so many countries poor? What policies might help them grow out of poverty? CHAPTER 1 The Science of Macroeconomics slide 4
CHAPTER 1 The Science of Macroeconomics slide 4 Important issues in macroeconomics ▪ What is the government budget deficit? How does it affect the economy? ▪ Why does the U.S. have such a huge trade deficit? ▪ Why are so many countries poor? What policies might help them grow out of poverty? 1