The national economy
The National Economy introduces macro-economic concepts, models, and theories, and explains how macro-economic problems are analysed, and policies evaluated.
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Economic
policy - is the deliberate attempt to generate increases in economic
welfare. Since the late 1920s, when many advanced economies were on the
brink of complete collapse, economists have recognised that there is a
role for government in steering a macro-economy towards increased economic welfare.
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Inflation - inflation and deflation arise from changes in either the demand side or supply side of the macro-economy. Demand pull inflation usually occurs when there is an increase in aggregate monetary demand caused by an increase in one or more of the components of aggregate demand (AD), but where aggregate supply (AS) is slow to adjust. More... |
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Unemployment - there are a number of types of unemployment, defined in terms of cause and severity. Cyclical unemployment exists when individuals lose their jobs as a result of a downturn in aggregate demand (AD). If the decline in aggregate demand is persistent, and the unemployment long-term, it is called either demand deficient, general, or Keynesian unemployment. More... |
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Poverty - the alleviation of poverty is increasingly seen as a fundamental economic objective. Poverty creates many economic costs in terms of the opportunity cost of lost output, the cost of welfare provision, and the private and external costs associated with exclusion from normal economic activity. These costs include the costs of unemployment, crime, and poor health. More... |
Go to: 'What is macro-economics'?