Introduction To Macroeconomics

Semaine 1: Introduction to largeeconomics Growth is a crucial instauration to macroeconomics, both capital and technology are necessary for an cost-efficient growth. For Schumpeter (austrian economist) technology is linked to innovation. For him new technologies are both strong and bounteous. Good in the way that it stimulates the economy but problematical because it leads to the death of old technologies which has consequences (unemployment). The positive side is always the sovereign one. In order to innovate you need to provide individuals with incentives. It is non only an economic issue as laws etc are practically involved. Distinction between macro and small Macroeconomics is more recent. economics is right away seen more like a knowledge but it employ to be called political economy (Smith, Ricardo..). It changed in the end of C19th. untainted economist (1)----> neo-classical economist (specify on micro, how securities industry is going to earn and h ow to make it work efficiently. Need of symmetricalness between catering and contract) (2)----> new approaches to economics, starting point of the macro approach give thanks to Keynes. The macro approach trust logical relationships between aggregates (consumption, investment, income). blend: smtg you obtain when you sum up things. Summing the bottom up: you increase up the small ones to prevail the big one.

(1)= neo-classical revolution (2)= the great impression in the 30s and German hyper-inflation (pushed them to come back to a deal economy which makes it secure to value things) Macro and micro abb reviation are divers(prenominal) but can bo! th be used to let off the same phenomenon. Example 1: Unemployment - For micro: where is the problem overture from? How to clear the market for demand and supply to meet once more? Wages (price of labour). A solution office be tos lapse fixing wages so that demand meets supply ---> slight regulations. German reform in nineties: when an unemployed person refuses a job for the 3rd epoch he is not entitled to unemployment money anymore change surface if over-qualified for the...If you essential to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper