Over the same period of time, the population in the
largest towns have been growing at the expense of
The Norwegian housing market was deregulated
through the 1980 s and thus has become more sensi-
tive to development in macroeconomic factors like inte-
rest rates and unemployment. This was a clear experi-
ence during the late 1980s and through the 1990s when
the economy first boomed with rising building costs
and house prices, then almost collapsed with a rapid
increase in real interest rates and an unemployment
rate higher than for more than fifty years.
This book was written to complete the curriculum requirement of the Master’s of Macroeconomics
degree. Macroeconomics is a very practical subject and can be very useful for policy making. Domestic
and international economies are subjected to variations in savings, income, exchange rates, as well as
interest rates and the balance of payments. This book attempts to explain the domestic and international
factors responsible for creating the equilibrium of the balance of payments, interest rates and inflation....
Principles of Macroeconomics: Chapter 12 - Production and Growth presents Economic growth around the world, productivity’s role, the factors that determine a country’s productivity, economic growth and public policy.
Chapter 3 - Individual markets: Demand and supply. After studying this chapter you will be able to understand: What markets are, what demand is and what factors affect it, what supply is and what factors affect it, how demand and supply together determine market equilibrium.
Chapter 8 - Building the aggregate expenditure model. In this chapter you will learn: The factors that determine consumption expenditure and saving, the factors that determine investment spending, how equilibrium GDP is determined in a closed economy without a government sector, about the effects of the multiplier on changes in equilibrium GDP,…
Chapter 9 - Aggregate demand and aggregate supply. After studying this chapter you will be able to understand: Why the aggregate demand curve is downward sloping, and what factors shift the entire curve; what determines the shape of the short run aggregate supply curve, and what factors shift the entire curve; how the equilibrium price level and real GDP are determined; the distinction between the short-run and long-run supply curve; the nature and causes of recessionary and inflationary gaps.
Chapter 27 - Basic macroeconomic relationships. After reading this chapter, you should be able to: Describe how changes in income affect consumption (and saving), list and explain factors other than income that can affect consumption, explain how changes in real interest rates affect investment, identify and explain factors other than the real interest rate that can affect investment, illustrate how changes in investment increase or decrease real GDP by a multiple amount.
After reading this chapter, you should be able to: Interpret how macroeconomics studies both long-run economic growth and short-run fluctuations in output and unemployment; explain why economists focus on GDP, inflation, and unemployment when assessing the health of an entire economy; discuss why sustained increases in living standards are a historically recent phenomenon; identify why saving and investment are key factors in promoting rising living standards.
After reading this chapter, you should be able to: List two ways that economic growth is measured; define "modern economic growth" and explain the institutional structures needed for an economy to experience it; identify the general supply, demand, and efficiency forces that give rise to economic growth; describe "growth accounting" and the specific factors accounting for economic growth in the United States.
After reading this chapter, you should be able to: Describe how changes in income affect consumption (and saving), list and explain factors other than income that can affect consumption, explain how changes in real interest rates affect investment, identify and explain factors other than the real interest rate that can affect investment, illustrate how changes in investment increase or decrease real GDP by a multiple amount.
Chapter 12 - Aggregate demand and aggregate supply. After reading this chapter, you should be able to: Define aggregate demand (AD) and explain the factors that cause it to change, define aggregate supply (AS) and explain the factors that cause it to change, discuss how AD and AS determine an economy's equilibrium price level and level of real GDP,...
Chapter 9 - The short-run Keynesian policy model: Demand-side policies. After reading this chapter, you should be able to: Discuss the key insight of the AS/AD model and list both its assumptions and its components, describe the shape of the aggregate demand curve and what factors shift the curve, explain the shape of the short-run and long-run aggregate supply curves and what factors shift the curves,...
Chapter 8 - Economic growth. In this chapter, we begin by defining ways that economic growth can be measured and the reasons that economic growth is desirable. Then we look at differences in economic growth across countries and examine the factors that have led to such varied growth.
Chapter 14 - Money, banking, and financial institutions. In this chapter, we start by looking at the functions of money and the definitions of the money supply. Then there is a discussion of the factors that back the money supply. In this chapter, you will be introduced to the U.S. banking system, in particular, the Federal Reserve. You will learn about their functions and how the Fed has been set up.
Notes to the students: The concept of “Marginal Physical Product – MPP” in this problem set is exactly the same that of “Marginal Productivity – MP” in the lecture Multiple Choice Questions
1. Which of the following are factors of production?
A. Output in a production function
C. Land, labor, capital, and entrepreneurship
D. Implicit and explicit costs
Business models have become the primary tools for the financial analysis of nearly all
major business decisions. However, the structure and design of most models have evolved
without reference to an effective business-modelling methodology. In writing this book we
hope to provide the terms of reference for best-practice business modelling.
The other group of articles is rather empirical in nature and estimate a long-run
relationship between the aggregated value of credit and a set of standard macroeconomic
factors such as output, prices or interest rates. The main ¯nding of these studies is that
for most countries the value of credit tend to increase with GDP and asset prices, and
to decrease with the level of interest rates (see Egert et al., 2007 and references therein).
Employing this methodology, there has been a growing literature showing
strong inﬂuence of macroeconomic variables and stock markets, mostly for
industrialized countries (see, for example, Hondroyiannis and Papapetrou,
2001; Muradoglu et al. 2001; Fiﬁeld et al. 2000; Lovatt and Ashok 2000;
and Nasseh and Strauss 2000). Additionally, researchers have begun to turn
their attention to examining similar relationships in developing countries,
particularly those in the growth engines of Asia (for example, Maysami and
Sims 2002, Maysami and Koh 2000).
Our aim is to contribute to the above literature by proposing a life-cycle model with
individual income uncertainty that can be used to assess how various macroeconomic
factors a®ect the equilibrium value of household credit. We show that its value de-
pends on (i) the lending-deposit interest rate spread, (ii) individual income uncertainty,
(iii) individual productivity persistence, and (iv) the generosity of the pension system.
This monograph is about managing our financial wealth in the context of
having both human and financial capital. The portfolio that works best tends to
hold stocks and bonds as well as insurance products. We are attempting to put these
decisions together in a single framework. Thus, we are trying to provide a theoretical
foundation—a framework—and practical solutions for developing investment
advice for individual investors throughout their lives.