Principles Of Macroeconomics

Principles of Macroeconomics

Ana Sori

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Principles of Macroeconomics

Response One

What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics?

Based on the definition of the economy, the word scarcity is important because this makes people think about the utilization of the available resources in a satisfying way to fulfill their needs and desires. In a scarce situation, people are limited to certain choices. A resource is considered to be scarce when the total amount at a price of zero is exceeded by the desires of people. In the economy, if there will be no scarcity, then it will mean that there will be no economic constraints. In an economy, no scarcity means that people will not be needed to make choices between their desires and competing needs. Scarcity is a source to create competition in the economy which also allows people to make more suitable choices ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"otnEmkaG","properties":{"formattedCitation":"(McEachern, 2016)","plainCitation":"(McEachern, 2016)","noteIndex":0},"citationItems":[{"id":574,"uris":["http://zotero.org/users/local/smYQhi21/items/I98IPKUM"],"uri":["http://zotero.org/users/local/smYQhi21/items/I98IPKUM"],"itemData":{"id":574,"type":"book","abstract":"Readers gain a strong understanding of economic principles with the hundreds of lively examples found in McEachern's MACROECONOMICS: A CONTEMPORARY INTRODUCTION, 11E. This book draws on familiar life experiences to help explain macroeconomic concepts, choices, institutions, and events. Interesting case studies, the latest research findings, and focused examples offer genuine insight into how economic principles work in today's world. A friendly writing style is enhanced by learning features that make the material clear and more direct. Understandable graphs and exhibits include captions that summarize key points, color-coded curves, and helpful labels for clarification. MACROECONOMICS: A CONTEMPORARY INTRODUCTION, 11E emphasizes how a solid understanding of macroeconomics can enhance professional and personal success.Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version.","ISBN":"978-1-305-50549-0","language":"en","note":"Google-Books-ID: jntTCwAAQBAJ","number-of-pages":"506","publisher":"Cengage Learning","source":"Google Books","title":"Macroeconomics: A Contemporary Introduction","title-short":"Macroeconomics","author":[{"family":"McEachern","given":"William A."}],"issued":{"date-parts":[["2016",1,1]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (McEachern, 2016). Based on the basic concept of economics, scarcity creates the competitive behavior of people to make the best choices regarding their needs and desires with which they are being provided.

Response Two

Why do economists pay more attention to national economies (for example the U.S. or Canadian economies) than the state or provincial economies (such as California or Ontario)?

In economic development, the national economic indicators are considered to be better in comparison with the state economies. The reason is that, state economies are only limited to regional economies. State economies cannot be considered to be one of the sources to know more about the economic situations at a macro level. The state economies are only concerned with economic fluctuations at a central level. For that purpose, to provide accurate information about the employment ratios, gross domestic product, per capita income (PCI), health services status at a macro level, national economies have to be more focused by economists. Economists emphasize on these basic indicators to provide economic information that is provided to people on macrolevel economies ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"tAjEoHvA","properties":{"formattedCitation":"(Vidal et al., 2017)","plainCitation":"(Vidal et al., 2017)","noteIndex":0},"citationItems":[{"id":"yjliTPt0/XAMIxdEa","uris":["http://zotero.org/users/local/F0XOCTdk/items/YNHNFFXI"],"uri":["http://zotero.org/users/local/F0XOCTdk/items/YNHNFFXI"],"itemData":{"id":1571,"type":"article-journal","title":"A Monthly Regional Indicator of Economic Activity: An Application for Latin America","container-title":"Latin American Research Review","page":"589-605","volume":"52","issue":"4","URL":"https://4x11omjoa-mp03-y-https-search-proquest-com.proxy.lirn.net/central/docview/2068854202/fulltextPDF/FE6CA0B94CB42C6PQ/1?accountid=158399","author":[{"family":"Vidal","given":"Pavel"},{"family":"Sierra","given":"Lya Paola"},{"family":"Sanabria","given":"Johana"},{"family":"Collazos","given":"Jaime Andrés"}],"issued":{"date-parts":[["2017"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Vidal et al., 2017). However, state economies are important too, but to provide a wider lens on macro levels, national economies are more appreciated. In case of the United States and California, economies at national levels are paid more attention because they are concerned with the overall economies.

Why doesn't the National Bureau of Economic Research identify the turning points in economic activity until months or even a year after they occur?

In any economy there occur fluctuations, which results in the different seasons and occurrences of other economic situations that may either help the economies to grow or decrease economic growth. Micro-level changes in the economies are not identified by the economists that will allow them to consider these changes as challenges. This also means that these small changes in production can be temporary in the economy. Economic depressions and recessions are necessary to be measured in a longer time, which will provide enough information to the economists, to know about economic stability ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"DMyR8hTT","properties":{"formattedCitation":"(Hira, 2011)","plainCitation":"(Hira, 2011)","noteIndex":0},"citationItems":[{"id":"yjliTPt0/8PtN0dYc","uris":["http://zotero.org/users/local/F0XOCTdk/items/ABBVRTL7"],"uri":["http://zotero.org/users/local/F0XOCTdk/items/ABBVRTL7"],"itemData":{"id":1566,"type":"article-journal","title":"Economists in the Americas","container-title":"2011","page":"308-311","volume":"36","issue":"71","abstract":"The chapters add nuance to a story that has been well told before, namely, how Latin American economists' ideas changed from a CEPAL (Comisión Económica para América Latina) orientation related to importsubstituting industrialization in the 1950s-60s to the free-market-based orientation of the 1980s-90s. As those of us familiar with this story know, and as [Veronica Montecinos]'s chapter reminds us, the change centred around the \"Chicago Boys,\" University of Chicago-trained Chilean economists who came to influence the policies pursued by Pinochet after the military coup in 1973. Other case study chapters point out that the Chicago school and orthodox views in general seeped through the region through a variety of channels, including direct training, networks, and foundation funding for think tanks. Contributors to the volume make the important point that the ways in which the neoliberal model was adopted, along with its substantial degree of influence, varied greatly across the continent. For example, Glen Biglaiser points out in his chapter on Argentina that there was actually reluctance if not resentment toward Chilean economists hired to train local counterparts. In her excellent chapter on Mexico, Sarah Babb notes the close links between the state and Mexican economists, dating back to the revolution and the founding of the original economics institutions there, UNAM (Universidad Nacional Autónoma de México) foremost among them. Adolfo Garcé 's chapter on Uruguay depicts an economics profession that was developed in a manner largely out of touch with the country's policy interests.","URL":"https://search.proquest.com/docview/1028004237?accountid=158399","ISSN":"08263663","language":"English","author":[{"family":"Hira","given":"Anil"}],"issued":{"date-parts":[["2011"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Hira, 2011). This economic stability may be either on a regional level or on a state level. It will be not easier to NBER to identify the turning points because of the nature of these economic changes occurring in economies and these may not be enough for the identification of problems. To identify turning points in the economies, there has to be a major change, which can be identified by NBER.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Hira, A. (2011). Economists in the Americas. 2011, 36(71), 308–311. https://search.proquest.com/docview/1028004237?accountid=158399

McEachern, W. A. (2016). Macroeconomics: A Contemporary Introduction. Cengage Learning.

Vidal, P., Sierra, L. P., Sanabria, J., & Collazos, J. A. (2017). A Monthly Regional Indicator of Economic Activity: An Application for Latin America. Latin American Research Review, 52(4), 589–605. https://4x11omjoa-mp03-y-https-search-proquest-com.proxy.lirn.net/central/docview/2068854202/fulltextPDF/FE6CA0B94CB42C6PQ/1?accountid=158399