Explanation of macroeconomic terms

Macroeconomics is based on the activities of the general process of the national economy as the research object, focusing on the investigation and explanation of how the national income, employment level, the level of economic aggregates are determined, how fluctuating, so it is also called aggregate analysis or aggregate economics.

Macroeconomics is also known as general economics and big economics. It is the symmetry of microeconomics. Macroeconomics is a branch of modern economics.

Macroeconomics takes the entire national economy as the object of investigation, and studies the decisions and changes of various aggregates in the economy, so as to solve the problems of unemployment, inflation, economic fluctuations, and the balance of payments, and achieve long-term stable development.

This is a concept in relation to the legal devaluation of the official increase in the exchange rate of foreign currencies.

Explanation of macro-Liang material-view economics.

Economics that takes the entire national economic activity as the object of study.

Words Decomposition Macro Explanations Macroscopic theories that are large enough to be observed with the naked eye, and do not involve the internal structure or mechanism of molecules, atoms, and electrons, and a detailed explanation of macroeconomics in the macroscopic world. As opposed to "micro". It does not involve the internal structure or mechanism of molecules, atoms, electrons, etc.

Such as: the macro world lead slag feast; Macro observation...Generally refers to the general aspect or explanation of economics A general term for the study of various aspects of the national economy.

Including political economy, sectoral economics, accounting, statistics, etc. Abbreviation for Political Economy.

Macroeconomics: It is based on the activities of the total process of national economic and economic losses, and mainly examines the total level of employment and gross national income and other economic aggregates, so macroeconomics is also called employment theory or income theory.

Gross Domestic Product: The market value of the final product produced by a country or region using factors of production per unit of time.

Gross National Product (GNP): The market value of the final product produced by all factors of production owned by a country's citizens in a given period.

Net Domestic Product (NDP): NDP is obtained after deducting capital depreciation from GDP.

Nominal GDP: The market value of all final goods in terms of the year in which goods and services are produced.

Real GDP: The market value of all final products calculated by adding up the base period of a previous year.

Explanation of terms

Chapter I. Gross Domestic Product (GDP): refers to the market value of all final products produced by the economy and society using factors of production in a certain period of time.

Gross national product: It is a national concept, which refers to the market value of the final products produced by all the factors of production owned by the citizens of a certain country in a certain period of time.

Replacement investment: Due to the wear and tear of plant and machinery, it is necessary to use depreciation expenses to purchase worn out machinery and equipment, etc., that is, the investment made with depreciation expenses.

Flow: is a variable that occurs over a certain period of time.

Stock: A variable that exists at a certain point in time.

Nominal GDP: is the market value of all final goods calculated using the current year** of goods and services produced.

Real GDP: The market value of all final products calculated using a previous year as the base period**.

GDP Translation Index: The ratio of nominal GDP to real GDP.

Total Investment: Net Investment + Replacement Investment.

Chapter II. Investment: Investment in economics refers to the formation of capital, that is, the increase of real capital in society, including the increase of plants, equipment and inventories.

Equilibrium output: An output equal to aggregate demand becomes an equilibrium output or a drain income.

Marginal propensity to consume: the ratio of increased consumption to increased income, that is, the ratio of increasing consumption by 1 unit of income.

Investment ratio: refers to the ratio of changes in income to changes in investment expenditures that bring about such changes. Chapter III.

Liquidity preference: Due to the practical flexibility of money, people prefer to preserve their wealth by sacrificing interest income and storing non-interest-bearing money.

Liquidity trap: It refers to the situation when the interest rate is extremely low, people think that the interest rate will not fall again, and the bonds** will not rise again, so they sell all the bonds, exchange them for currency, and no longer buy bonds, and people are willing to hold on to their hands no matter how much currency they have.

IS Curve: The IS curve describes the inverse relationship between interest rates and income in the case of product market equilibrium, in which investment and savings are equal.

LM Curve: The LM curve is a curve that describes the relationship between interest rates and income at the equilibrium of the money market (i.e., the money supply is equal to the demand for money).

IS-LM model: A model that illustrates the determination of income and interest rates when the product market and the money market reach equilibrium at the same time.

Keynesian Zone: The area where the LM is horizontal.

Classical region: The region where lm is in a vertical state.