Families in Macroeconomics
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  • Their decisions affect the level of saving, investment, consumption, trade and total economic activity.

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    When they make their decisions they need to weigh the short-term trade-off between inflation and unemployment. Those trade-offs and the nature of monetary and fiscal policy are discussed in more detail in later articles. Any economic forecasts and analyses are only as good as the information available.

    Aggregate demand - Aggregate demand and aggregate supply - Macroeconomics - Khan Academy

    The best way to get a feel for what is going on in the economy is to keep abreast of current events and commentary. TV coverage, starting with the early morning business news, and the radio are also good sources of information.

    To get more technical information about what is going on in the economy visit the Reserve Bank of New Zealand and Treasury websites. They both have freely available information:.

    For raw data go to Statistics NZ; most information is free to the user: www. What is macroeconomics? What's it all about?

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    Crowding out occurs when government spending simply replaces private sector output instead of adding additional output to the economy. Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy. Browse our macro- and microeconomics programs listings What's the difference between macroeconomics and microeconomics? All Courses. New Keynesian The New Keynesian school attempts to add microeconomic foundations to traditional Keynesian economic theories.

    Why would that be? Well, there must be a lack of consensus. No one does.

    follow link Any responsible economist is the first to admit that. As opposed to microeconomics, which looks at the economy at the level of individual businesses and consumers, macroeconomics aims to explain the interaction of different factors that affect the economy as a whole, such as how interest rates impact macro variables like unemployment, inflation, and economic growth.

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    As Gates points out, the economy is complex and ever changing. Economists try to make sense of it by developing mathematical models that describe how the different factors relate to each other, and test the accuracy of those models using past data.

    But the macroeconomy has millions of moving parts that affect each other.