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MACROECONOMICS

macroeconomicsIn the 1930s one of the world’s strongest economies suffered a devastating collapse. It was the American economy, and the disaster was the Great Depression.In other words, governments had to have

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Слайд 1MACROECONOMICS

MACROECONOMICS

Слайд 2macroeconomics
In the 1930s one of the world’s strongest economies suffered

a devastating collapse. It was the American economy, and the

disaster was the Great Depression.
In other words, governments had to have an understanding of macroeconomics.
macroeconomicsIn the 1930s one of the world’s strongest economies suffered a devastating collapse. It was the American

Слайд 3There are some different aspects between microeconomics and macroeconomics. Microeconomics

looks at supply and demand for a single product or

industry, macroeconomics follows supply and demand patterns for the whole economy
There are some different aspects between microeconomics and macroeconomics. Microeconomics looks at supply and demand for a

Слайд 4Macroeconomics is not only about knowing what’s happening in the

economy
After the great depression governments realized that an economy

needs to be managed. They aim to have steady growth, to control inflation, and to avoid recessions.
Despite the difficulties, they have special mechanisms which help them to do this.
Macroeconomics is not only about knowing what’s happening in the economy After the great depression governments realized

Слайд 5Fiscal policy
The first mechanism is fiscal policy. Fiscal policy refers

to government spending and to the tax system.
With the

help of these two mechanisms, governments can have a huge effect on the growth of the economy.
Fiscal policyThe first mechanism is fiscal policy. Fiscal policy refers to government spending and to the tax

Слайд 6Monetary policy
The second of these mechanisms is monetary policy. With

its monetary policy, a government sets interest rates and also

controls the amount of money that circulates in the economy.
These interest rates have a big impact on the economy.
Monetary policyThe second of these mechanisms is monetary policy. With its monetary policy, a government sets interest

Слайд 7Administrative approach
The third mechanism is administrative approach. This is a

range of things that governments do to increase the supply

of goods and services to the economy but without increasing prices.
There are a number of ways governments try to do this.
Administrative approachThe third mechanism is administrative approach. This is a range of things that governments do to

Слайд 8In the end…
With the combination of these methods , governments

try to steer or guide the economy on a steady

and predictable path.
They aim for gradual economic growth and to avoid disasters like the Great Depression.
In the end…With the combination of these methods , governments try to steer or guide the economy

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