Leture note Macroeconomics - Kinh tế vĩ mô FTU

lOMoARcPSD|69091439 MACROECONOMICS CHAPTER 1: INTRODUCTION 1. The birth of macroeconomics - Economics study how society allocates scarce resources to meet unlimited demands of people. - Micro: shows consumers and firms how to maximize their benefits in the economy (MU>=MC) - Explain: Supply > Demand → The whole economy’s inefficiency → Macroeconomics Tóm lại: 1 firm có sp dư thừa, ko giảm giá mà tiêu hủy hết, để ko làm ảnh hưởng giá => lãng phí resources => Ai cũng chạy theo lợi ích riêng => ảnh hưởng lợi ích chung => cần có môn học nghiên cứu cách làm kinh tế chung hiệu quả nhất 2. What is macroeconomics? a) Definition: is the study of economy wide phenomena, including inflation, unemployment, and economic growth. - Base on the strength of each country, it chooses to produce the products it has strength what, how much, how, to whom (distribute) b) Its study: the whole economy c) Contents for researching - National yield: the most important measure of a nation’s achievement (GDP,GNP) + reflect standard of living + DON'T MENTION the quantity of the good and service but the value of them within the country. Why? + Standardization: It's easier to compare the value of a car with that of a computer than to compare the quantity of cars produced with the quantity of computers produced. + Comparability: Value-based metrics enable comparison over time and across different countries. For instance, if Country A produces 100 cars and Country B produces 200, it doesn't tell us much about their relative economic performance. However, if Country A's car sells for $20,000 and Country B's for $15,000, we can make meaningful comparisons about the relative economic strength of each country's automotive industry. + Reflecting Economic Activity: The value of goods and services produced reflects the economic activity and contribution to the economy. For example, if the value of cars produced increases, it suggests growth in the automotive industry, even if the quantity of cars produced remains the same or even decreases due to efficiency improvements. - Inflation: is an increase in the overall level of prices. + khác vs mức giá trong ktvm, ko phải giá từng sp cụ thể Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 - + CPI, DGDP (chương 2) Unemployment: expresses the situation of ppl who are in working ages, able to work, seeking jobs but haven’t found it yet. International transactions: Export - Import (chap7) 3. Positive versus normative analysis - positive statements (pp thực chứng): try to describe the world as it is + called descriptive analysis + ex: april 2020, the price of oil sharply decreased at the level of - 40 usd/oilcan reason: + demand decrease + supply of oil still increase: họ ko dừng đc việc khai thác đó, trước covid, họ đã lắp dàn khoan dưới lòng biển, tới từng thời điểm, trữ lượng dầu đc hút lên + giá giảm xuống âm do trữ lượng cũ chưa đc giải phóng, trữ lượng mới ko có chỗ chứa → để bán hàng trong bối cảnh đó - Normative statement: describe the world should be + ex: in response to deeply reducing price, firms should cut down on the supply of oil BT: - An increase in the minimum wage will cause a decrease in employment among the least-skilled → pos - The income gains from a higher minimum wage are worth more than any slightly reductions in employment → normative 5. Macroeconomics system - input: + external events: uneconomic ev: weather, disaster, war,... (beyond the control of ppl) + internal ev: behaviors and management tools of government: fiscal policy, monetary policy,... - black box: where the interaction between AD and AS happens - the most important role in the whole system + decide the quality of the output + là hạt nhân trung tâm: hđ trao đổi mua bán giữa các qg với nhau, giữa buyer (AD tổng cầu) và seller (AS tổng cung) - outputs: show the quality of the economy through economic growth, employment, trade balance,... 6. Objectives and management tools Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 - Fairness: in distributing income among different group of people-> if the gap between the rich and the poor is too large-> unstable society -> investment disappear Management tools: ● Fiscal policy: G and T. ● Monetary policy: MS and i-> Y (The national You?-> per ability to produce goods and services). ● Income Policy: P, W-> limit inflation. ● External economic policy: exchange rate, tariff and non-tariff-> NX and BOP Nội dung nghiên cứu trong nền kinh tế của 1 quốc gia: ● Sản lượng quốc gia ● Lạm phát ● unemployment ● trade balance Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 CHAPTER 2: MEASURING A NATION’S INCOME 1. Gross Domestic Product (GDP) - Tổng sản phẩm quốc nội Quốc nội: income+ values of services+ goods Components : clothes, cars,... Ko measure fairness How much products produced each year 1.1 Definition: Gross Domestic Product (GDP) is the market value of all final goods and services produced within a country in a given period of time. - Market value: output valued at market prices + The price <- the price accepted by both the buyers and the sellers , the price that is suitable for a product → market price is established by the law of demand and supply in the market + 300 là market price, 150 là giá bán trong 1 group nhỏ → có phải market price ko? Ko. It doesn’t reflect the value of the T-shirt (under the production cost) - all final: It records only the value of final goods, not intermediate goods. + Not included: illegal goods like drugs and weapons Underground economy + Self-sufficient activities: tự nuôi gà ăn, giá trị đc tạo ra nhưng ko đc thống kê. I buy the phone that you are using, the government can not control when you set a livestream to sell products, + Illegal activities: drugs, weapons/ Prostitution (mại dâm)/ organs, children, human + separate daily-life transactions (from a person without business license- giấy phép kinh doanh) EX: fiber -> cotton -> cloth -> clothes + Final good: clothes + Intermediate goods: fibre -> cotton -> cloth. Bc fiber is used to make cotton and all the value is transferred to cotton. continued repeatedly - “ Final goods and services...” + Are the ones which are not used to produced other goods. + They are only sold to final consumers. - “ Intermediate goods and services...” + Are the ones used to be inputs to produce other goods and used up once time in the production process - “…Produced…” + It includes goods and services currently produced, not transactions involving goods produced in the past. - “…Withina Country…” Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 + It measures the value of production within the geographic confines of a country Có 2 m vải có sẵn-> 1,5m dùng cho t-shirt còn dư 0,5m thì 0,5 là hàng tồn kho (inventory) và là final goods Năm sau lấy ra: gdp năm sau ko bị ảnh hưởng vì cái income sẽ giảm còn supply tăng Clothes is the final product In short 1. To compute the total value of different G&S, GDP uses market prices. 2. Intermediate goods are not counted in GDP. 3. The treatment of Inventories: If produced G&S spoil, it does not alter GDP. If produced G&S is put into inventory, GDP rises. 4. Some G&S are not sold in the market and do not have market prices, we must use an estimate of their value. 5. Used goods are not included in GDP calculation. Other measures of national incom Under 2. Consumer price index (CPI)\ 1.2 Measuring GDP The model of money-goods circular in a simple economy. The circular- flow diagram (giống vi mô) A closed and reciprocal process-> always involve 1 buyer and 1 seller Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com) lOMoARcPSD|69091439 Z income = Z expenditure There are 2 ways of computing GDP: ❖ Total expenditure on domestically - produced final G&S ❖ Total income earned by domestically located factors of production - Expenditure approach - Income approach - VA approach Expenditure Approach Components of expenditure: ★ Consumption (C): the value of all D&S bought by households. Includes - Durable: long-term (above 1 year): air-conditioner, đồ gia dụng - Non-durables: short-term: food, vegetables - Services: health, education, tourism, grab, banking,.. ★ Investment (I): Investment spending by businesses and households. Includes: - Business fixed investment (đầu tư cố định của các doanh nghiệp): Spending on plant and equipment that firms will use to produce other goods & services.cover. + It ‘s initial equipment (e.g desktop, the building, the air-conditioner,...) the firms use for operation. (hàng hóa ban đầu) + It’s fixed, not moving, and is the long-term, permanent property of the business - Residential fixed investment: Spending on housing units by consumers and landlords. (khi mà mua chứ hong rent nữa) - Inventory investment: the change in the value of all firm’s inventories (hàng tổn kho: raw materials, semi products: áo may xong nhưng chưa dùng) + Can buying stocks/ putting money in banks for interest are called investment? does not create more goods and ser (development) for the economy → different from financial terms: money creates money → buying stocks is regarded as savings, not investment. ★ Government Purchases (G): The spending on goods and services by local, state, and federal government, excludes transfer payments (unemployment insurance payments) - gov cho nhỏ thất nghiệp 2 triệu để nhỏ mua đồ ăn thức uống quần áo -> tính vào gdp khum? + consumption change → gdp changes Expenditure Approach ★ Net exports: Exports minus imports. Expenditure Approach GDP = C + I + G + NX Downloaded by Hai Phan Chinh (haiphanchinh34@gmail.com)