Introduction To Macroeconomics

Semaine 1: Introduction to bigeconomics Growth is a crucial dodge to macroeconomics, both capital and technology are necessary for an cost-effective growth. For Schumpeter (austrian economist) technology is linked to innovation. For him new technologies are both good and bounteous. Good in the way that it stimulates the economy but harmful because it leads to the death of old technologies which has consequences (unemployment). The positive side is always the preponderating one. In order to innovate you need to provide individuals with incentives. It is non only an economic issue as laws etc are a lot involved. Distinction between macro and small Macroeconomics is more recent. political economy is right away seen more like a scientific discipline 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 commercialize is going to earn and how to make it work efficiently. Need of chemical equilibrium between catering and contract) (2)----> new approaches to economics, starting point of the macro approach give thanks to Keynes. The macro approach localize 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 come up 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 securely to value things) Macro and micro abbreviation are incompatible but can both be used to relieve the same phenomenon. Example 1: Unemployment - For micro: where is the problem access from? How to clear the market for demand and supply to meet once again? Wages (price of labour). A solution office be tos slide by fixing wages so that demand meets supply ---> slight regulations. German reform in nineties: when an unemployed psyche refus! es a job for the 3rd epoch he is non entitled to unemployment money anymore change surface if over-qualified for the...If you wish to get a full essay, order it on our website: OrderCustomPaper.com

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