Pengantar Ekonomi Makro I

Pengantar Ekonomi Makro
Bagian Pertama
Eko Suprayitno
ekonashwan@gmail.com
Definition of Economics
Definition of Economics #1
Paul A. Samuelson
Studies how the prices of labor,

capital, and land are set in the
economy, and how these price are
use to allocate resources.
3
Explores the behavior of the financial

markets and analyzed how they
allocate capital to the rest of the
economy
4
Analyzes the consequences of

government regulation on market
efficiency
5
Examines the distribution of income,

and suggest ways that the poor can
be helped without harming the
performance of economy
6
Looks at the impact of government

spending taxes, and budget deficits on
growth
7
Studies the upswings and downturns

in unemployment and production that
make up the bussiness cycle, and
develops government policies for
improving economic growth
8
Examines the patterns of trade among

nations and analyzes the impact of
trade barrier
9
Looks at growth in developing

countries, and proposes ways to
encourage the efficient use of
resources
10
Definition of Economics - Conclusion
Economics is the study of how

societies use scarse resources to
produce valuable commodities and
distribute them among different people
11
Definition of Economics - Keywords
Keywords of Economics :
a) study
b) societies use scarse resources
c) produce valuable commodities
d) distribute
e) different people
12
Exponent of Modern Economics
Company
LOG
O
Exponent of Modern Economics #1
Adam Smith
An Inquiry into the Natures and
Causes of the Wealth of Nations
(1776)
14
Adam Smith
• How individual prices are
set
• How prices of land, labor
and capital are set
• Inquired into the strengths
and weakness of the
market mechanism
Founder of Microeconomics
15
John Maynard Keynes

General Theory of Employment,
Interest and Money (1936)
16
Keynes
• Theory of what causes
unemployment and
economic downturns.
• How Investment and
consumption are
determined
• How central bank manage
money and interest rates
• Why some nations thrive
while others stagnate
17
Great Depression 1930s
Company
LOG
O
Great Depression #1
It was the longest, most

widespread, and deepest
depression of the 20th
century.
In the 21st century, the Great

Depression is commonly used as an
example of how far the world's
economy can decline
19
Great Depression #2
The Great Depression

had devastating effects
in virtually every
country, rich and poor.
Personal income tax
revenue, profits and
prices dropped, while
international trade
plunged by more than
50%.
Unemployment in the
U.S. rose to 25%, and
in some countries rose
as high as 33%
20
Great Depression #3
The depression originated in the U.S., starting with the fall in stock prices that
began around September 4, 1929 and became worldwide news with the stock
market crash of October 29, 1929 (known as Black Tuesday). From there, it
quickly spread to almost every country in the world.
21
Great Depression #4
22
Great Depression #5
23
Great Depression #6
24
Root of Macroeconomics
Company
LOG
O
Root of Macroeconomics #1
Microeconomics examines the behavior of

individual decision-making units—business
firms and households.
Macroeconomics deals with the economy

as a whole; it examines the behavior of
economic aggregates such as aggregate
income, consumption, investment, and the
overall level of prices.
 Aggregate behavior refers to the behavior of all
households and firms together.
26
Microeconomics vs Macroeconomics
27
Macroeconomists often reflect on the

microeconomic principles underlying
macroeconomic analysis, or the
microeconomic foundations of
macroeconomics.
28
Classical economists applied

microeconomic models, or “market
clearing” models, to economy-wide
problems.
However, simple classical models failed
to explain the prolonged existence of high
unemployment during the Great
Depression. This provided the impetus
for the development of macroeconomics.
29
Root of Macroeconomics #4a
 Three of the major concerns of

macroeconomics are:
Inflation
30
Root of Macroeconomics #4b
 Three of the major concerns of

macroeconomics are:
Output
Growth
31
Root of Macroeconomics #4c
 Three of the major

concerns of
macroeconomics are:
Unemployment
32
Keynes believed governments could

intervene in the economy and affect the
level of output and employment.
During periods of low private demand, the
government can stimulate aggregate
demand to lift the economy out of
recession.
33
 There are three kinds of policy that the

government has used to influence the
macroeconomy:
 Fiscal policy
 Monetary policy
 Growth or supply-side policies
34
Fiscal policy
refers to
government
policies
concerning taxes
and spending.
35
Monetary policy consists

of tools used by the
Federal Reserve to
control the quantity of
money in the economy.
36
Growth policies are government

policies that focus on stimulating
aggregate supply instead of aggregate
demand.
37
Components of Macroeconomics
Company
LOG
O
Components of Macroeconomics #1
39
 Transfer payments are

payments made by the
government to people whodo
not supply goods, services, or
labor in exchangefor these
payments.
40
Households, firms, the government,

and the rest of the world all interact in
three different market arenas:
1. Goods-and-services market
2. Labor market
3. Money (financial) market
41
 Households and the government purchase

goods and services (demand) from firms in
the goods-and services market, and firms
supply to the goods and services market.
 In the labor market, firms and
government purchase (demand) labor
from households (supply).
 The total supply of labor in the economy depends
on the sum of decisions made by households.
42
 In the money market—sometimes

called the financial market—households
purchase stocks and bonds from firms.
  Households supply funds to this market in
the expectation of earning income, and
also demand (borrow) funds from this
 market.
 Firms, government, and the rest of the
world also engage in borrowing and
lending, coordinated by financial
institutions.
43
References :
a) Economics (Samuelson & Nordhaus)
b) Economics (Case, Fair)
c) Principles Of Economics (Mankiw)
d) Teaching material adopted from Fernando & Yvone Quijano
See you next time...
44

Pengantar Ekonomi Makro I

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Pengantar Ekonomi Makro I

Uploaded by

Copyright:

Available Formats

Pengantar Ekonomi Makro

Studies how the prices of labor,

Explores the behavior of the financial

Analyzes the consequences of

Examines the distribution of income,

Looks at the impact of government

Studies the upswings and downturns

Examines the patterns of trade among

Looks at growth in developing

Economics is the study of how

John Maynard Keynes

It was the longest, most

In the 21st century, the Great

The Great Depression

Microeconomics examines the behavior of

Macroeconomics deals with the economy

Macroeconomists often reflect on the

Classical economists applied

 Three of the major concerns of

 Three of the major concerns of

 Three of the major

Keynes believed governments could

 There are three kinds of policy that the

Monetary policy consists

Growth policies are government

 Transfer payments are

Households, firms, the government,

 Households and the government purchase

 In the money market—sometimes

See you next time...

You might also like