Explanation of Macroeconomic Terms and Explanation of Microeconomics Terms English version . It s b

Summary of Terminology Explanations in Macroeconomics:

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

2. Gross National Product: The market value of the final products produced by all the factors of production owned by the citizens of a country in a certain period of time.

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

4. Nominal GDP: the market value of all final products calculated by the ** of the year of production of products and services.

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

6. GDP deflator: the ratio of GDP calculated at ** in the current year and GDP calculated at constant **.

7. Consumption index: The index obtained by calculating the changes in the level of daily necessities and labor services consumed by urban residents.

8. Producer's index: The index obtained by calculating the change in the level of the product obtained by the producer at all stages of the production process.

9. Marginal propensity to consume: the ratio between increased consumption and increased income, that is, the ratio of increasing the portion of consumption in 1 unit of income.

10. Marginal propensity to save: refers to the change in savings caused by an increase of 1 unit in income, and the marginal propensity to save fluctuates between 0 and 1. Because all consumption is either spent or saved, the sum of the marginal propensity to save and the marginal propensity to consume is constant.

11. The law of diminishing marginal consumption tendency: it refers to the fact that although people's ridiculous consumption fee increases with the increase of income, the increase in consumption is not as much as the increase in income. Since people do not always spend all of their increased income, but keep some of it as savings, the more their income increases, the smaller the proportion of their total income they spend on consumption.

12. Investment multiplier: The ratio of the change in income to the change in investment expenditure that brings about this change.

13. Purchase point multiplier: The ratio of the change in income to the change in purchase expenditure that caused the change.

14. Tax multiplier: The ratio of changes in income to changes in taxes that cause such changes.

15. **Transfer Payment Multiplier: The ratio of the change in income to the change in **transfer payment that caused the change.

1. Microeconomics (microeconomics) ("micro" originally means "small"), also known as individual economics, is a branch of modern economics, mainly based on a single economic position (a single producer, a single consumer, a single market economic activity) as a research object analysis of a discipline.

2. Microeconomics is an economic theory that studies the economic behavior of a single economic unit in a society, and how to determine the individual values of the corresponding economic variables. This paper analyzes the economic behavior of individual economic units, studies the operation of the market mechanism and its role in the allocation of economic resources in the modern Western economy and society, and proposes microeconomic policies to correct market failures. Concerned about the exchange between individuals and organizations in society, the basic problem it studies is the decision of resource allocation, and its basic theory is the theory that determines the relative power through supply and demand. So the main scope of microeconomics includes consumer choice, firm supply, and income distribution.

Macroeconomics is economics that studies the entire national economic activity.

Macroeconomics is a discipline in Western economics that studies macroeconomic phenomena such as a country's economic aggregate, aggregate demand and aggregate supply, total national income and composition, money and finance, population and employment, factors and endowments, economic cycles and economic growth, economic expectations and economic policies, and international economy and international economy.

Macroeconomics has developed rapidly since the publication of John Maynard Keynes's General Theory of Employment, Interest and Money. Macroeconomics is based on the activities of the overall process of the national economy, mainly examining the total level of employment, gross national income and other economic aggregates, therefore, macroeconomics is also called employment theory or income theory.

The research object of macroeconomics is the utilization of economic resources, including the theory of national income determination, employment theory, inflation theory, business cycle theory, economic growth theory, fiscal and monetary policy.

Macroeconomics belongs to the Western economic paradigm, because the macroeconomic field and the microeconomic field are separated from the study, and the relationship with the scientific general economics is neither the relationship between the whole and the part, nor the relationship between the general and the special, so it cannot study the general laws of economic development and the special laws of the macroeconomic field, and can only describe the economic phenomena at the macro level in a phenomenological sense.

Macroeconomics is a field of economics that uses general statistical concepts such as national income, investment and consumption of the economy as a whole to analyze the laws of economic operation.

Macroeconomics is relative to microeconomics.