The Basic Concept Of Economics Macro

The Basic Concept Of Economics Macro


Unlike the theory of microeconomics, in macro no longer discusses the individual and personal interests including the interests of the company. On the discussion of macro economic theory more towards the interests of the public economy as a wheel on a country.

  1. Expenses (Output) and income (Income) = output Sizes are macro > is gross domestic product (GDP). High low GDP a country influenced by technological advances, capital accumulation, and the quality of human resources. If a country is able to adopt advanced technology, have high capital accumulation, and the level of education which shows the quality of the human resource is high, it will have a higher GDP. This is true vice versa.
  2. Unemployment rate = > high unemployment levels Result, then the burden is heavy and the country is getting economic growth to be slow due to the national production is low. In addition, unemployment also have an impact on the level of purchasing power is low so that the resulting slack of a country's economy.
  3. Inflation and Deflation = > inflation and deflation related to monetary. Inflation is the general rise in price, while deflation the opposite, namely a decrease in price. Price changes are so drastic either inflation or deflation risk in the wake of the country's economy as a whole. In such a condition then the Government needs to intervene by applying fiscal and monetary policy.

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