Normative Definition: Economics is the science that studies how to efficiently allocate economic resources Positive Definition: Economics is the science that studies how an economy operates or how economic variables are determined under the given economic system. The System of an Economy:
The objective of this chapter is to study how money and interest rate is determined in the money and financial market. The money and financial market is the market in which money and various financial assets (such as, bonds and stocks) are exchanged
Question 1: Suppose in an open economy the consumption function take the form C 8Yd =100 + 0. Tax is the proportion of income with the tax rate to be given by 0.2. Meanwhile import depends on the domestic income with the function given by
Introduction The objective of this chapter is to study how employment is determined in the labor market We are considering the labor market in which the following relation should always hold:
Introduction The objective of this chapter is to move from theory to empiric. Specially, we shall study how macroeconomic policies can be applied to solve practical macroeconomic problems
Chapter 1: The Science of Macroeconomics Chapter 2: The Macroeconomic Variables Part II: Keynesian Macroeconomic Analysis Chapter 3: The Product Market Analysis Chapter 4: The Money Market Analysis Chapter 5: The IS-LM Model
