(BQ) Part 2 ebook "Economics" has contents: The roots of modern macroeconomics, money and interest rates, the relationship between the money and goods markets, fiscal and monetary policy, international trade, the balance of payments and exchange rates, global and regional interdependence,.and other contents. | 10/31/05 13:14 Page 395 Chapter 14 Macroeconomic Issues and Analysis: an Overview In the previous chapter we examined economic growth. In this chapter we turn to the other three key macroeconomic issues of unemployment, inflation and the balance of payments. We give an overview of these problems: how they are measured and their effects on society. We also have a first look at the causes of these problems. This helps prepare the ground for the analysis of later chapters. We saw in Chapter 13 that macroeconomics deals with economic problems in the aggregate (. for the whole economy). An important tool for analysing these aggregate problems is aggregate demand and supply analysis. We look at this analysis in section . This is then the basis for our analysis of inflation in section . Part D has been laying the foundations of macroeconomics. The final section of this chapter brings the threads together. It examines the relationship between the four macroeconomic objectives in both the short run and the long run: something that will be explored in more detail in Part E. CHAPTER MAP Unemployment The meaning of ‘unemployment’ Official measures of unemployment The duration of unemployment The composition of unemployment Unemployment and the labour market Disequilibrium unemployment Equilibrium unemployment 396 396 397 397 399 400 401 403 Aggregate demand and supply and the level of prices The aggregate demand curve The aggregate supply curve Equilibrium The balance of payments and exchange rates The balance of payments account Assessing the balance of payments figures The meaning of exchange rates Determination of the rate of exchange in a free market Exchange rates and the balance of payments Managing the exchange rate 405 405 406 407 Inflation The costs of inflation Causes of inflation Policies to tackle inflation 407 408 409 413 Postscript to Part D: The relationship between the four macroeconomic objectives Aggregate .
