Introduction to Macroeconomics

Created by: Lina Jovaisaite
Created on: 01-05-13 14:29

Define Micro

Microeconomics is based around a single model (constrained optimisation) and explains a multitude of empirical explanations about the economy i.e. the consumer prefernces given a budget contraint or the firm problem given cost constraints etc

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Define Macro

Macro is characterised by a multitude of models which may conflict each other. Concerned with the economy at the aggregate level i.e. the overall economy, overall/total: gov spending, investment,emplyment, the aggregate equilibrium of all markets etc

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Where do you start with Macro?

Begin with observing and summarising the macro economy and then try to create and apply models around the empirical evidence

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What are the four key components of this module?

Business Cycle Facts, Static General Equilibrium Model, Dynamic General Equilibrium model and the Monetary Models of Business Cycles

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What is the difference between SGE and DGE?

SGE is a model based in a single time period whereas DGE concerns itself with today and the future

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What are monteray business cycle models used for?

They use money as a way of explaining business cycles

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Other cards in this set

Card 2

Front

Back

Define Macro

Card 3

Front

Begin with observing and summarising the macro economy and then try to create and apply models around the empirical evidence

Back

Card 4

Front

Business Cycle Facts, Static General Equilibrium Model, Dynamic General Equilibrium model and the Monetary Models of Business Cycles

Back

Card 5

Front

SGE is a model based in a single time period whereas DGE concerns itself with today and the future

Back

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Introduction to Macroeconomics