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Lecture 1 Introduction To Macroeconomics
Lecture 1 Introduction To Macroeconomics
Introduction to Macroeconomics
Questions
1 Subject of Macroeconomics.
2 Methodological features of macroeconomic
analysis.
3 Model of circular flows (national economy) as a
reflection of the relationship between
macroeconomic agents and macroeconomic
markets.
4 Basic macroeconomic equations.
1. The subject of macroeconomics.
The money market and the capital market are constituent parts of the
financial market, where funds are distributed among economic entities.
International market represented by a foreign sector (overseas).
When analyzing an open economy, the international market is subdivided
into a market for goods and services, an asset market and a foreign
exchange market.
The foreign exchange market, in which there is a mutual exchange of
various national currencies, along with the money market in which the
national currency circulates, appears in the models of an open economy.
2. Methodological features of
macroeconomic analysis.
The macroeconomic model of the object under study includes two groups
of elements:
1 Exogenous (external) economic variables, the value of which is
determined outside the given model. These are the parameters known at
the time of building the model;
2 Endogenous (internal) economic variables, the value of which is
established (determined) as a result of the analysis (solution) of the model.
These are unknown parameters determined within the model.
2. Methodological features of
macroeconomic analysis.