In this article the Consumer Price Index and GDP deflator will both be covered, leading on from introducing them in the article on Macroeconomics – Theory & Data. The increase in the overall price level is called inflation, therefore, economists use the GDP deflator and CPI to measure Inflation. “The first difference is that GDP … Continue reading CPI vs GDP Deflator
In this article the Mundell-Fleming model will be explained, however to begin the article will cover the open economy, as such Mercantilism, Protectionism, and free trade. When you purchase a book online could you say your street traded with the bookstores street, or even your country and theirs? Here, Macroeconomics would answer in that it … Continue reading Mundell-Fleming Model Against Win-Win Trade
A textbook definition of macroeconomics says that “[it] is the study of the economy as a whole, including growth in incomes, changes in prices, and the rate of unemployment.” (Mankiw, 2010) Extending over global, regional and national economies. Economists advise on policies for the government regarding important economic indicators. Macroeconomics though can often cause mistakes … Continue reading What is Macroeconomics?
In this article we will be discussing economic calculations such as national income (C, I, G), production function (marginal product of labor, marginal product of capital K), nominal and real interest rates, inflation rates, and the unemployment rate covering job finding and separation. It is important to become aware of the different calculations in order … Continue reading Macroeconomic Calculations