(BQ) Part 2 book "Economics" has contents: The national economy; macroeconomic issues and analysis - an overview; fiscal and monetary policy; long term economic growth; long term economic growth; the balance of payments and exchange rates; economics of developing countries; global and regional interdependence;.and other contents. | Part E Foundations of Macroeconomics 14 The National Economy 400 15 Macroeconomic Issues and Analysis: An Overview 430 16 Macroeconomic Issues, Debates and Controversies 463 Why do economies sometimes grow rapidly, while at other times they suffer from recession? Why, if people want to work, do they sometimes find themselves unemployed? Why do economies experience inflation (rising prices), and does it matter if they do? Why do exchange rates change and what will be the impact of such changes on imports and exports? Why do individuals, firms and governments borrow and what are the implications of borrowing and debt for the economic health of countries? These macroeconomic issues affect all countries, and economists are called on to try to find explanations and solutions. In the next three chapters we will be looking at these issues and giving you a preliminary insight into the causes of these problems and what governments can do to tackle them. In the third of these chapters (Chapter 16) we shall see how macroeconomics has developed over the years as economists have sought to explain the macroeconomic problems of the time – right up to the financial crisis and recession of recent years. 399 11/13/14 2:17 PM Chapter 14 The National Economy C HAP T E R MA P The scope of macroeconomics 401 Macroeconomic debates The major macroeconomic issues Government macroeconomic policy 401 401 404 The circular flow of income 405 The inner flow, withdrawals and injections The relationship between withdrawals and injections The circular flow of income and the four macroeconomic objectives Equilibrium in the circular flow 406 407 Measuring national income and output 408 The three ways of measuring GDP Taking account of inflation Taking account of population: the use of per capita measures Taking account of exchange rates: the use of PPP measures Do GDP statistics give a .
