Topics studied in macroeconomics

The unemployment rate

• fraction of the labor force that wants work but does not currently have a job.
• Why has unemployment in Europe been twice as high as unemployment in the USA in the past two decades?
• Which region had higher unemployment in 1960, the USA or Europe?
• Why does Japan have such low unemployment?

The inflation rate

• rate at which prices are increasing in an economy.
• What determines the rate of inflation?
• What determines the price level and how quickly prices rise?
• Why was inflation so high in the 1970s
• How and why did inflation start falling so
• dramatically in the 1980s?

Government Policy

• Government use of policy to direct or stabilize the economy
  • fiscal policy
  • monetary policy

خير ما فعل .. فـ محافظ البنك المركزي مسئولاً عن السياسة النقدية Monetary Policy
والمعني بالسياسة المالية للدولة Fiscal Policy هي وزارة المالية بالتعاون مع البرلمان بالتشريعات المالية كفرض الرسوم والضرائب وبرامج الدعوم الخ
.
والخلط سبب تعثر كثير من القرارات الحكومية الاقتصادية https://t.co/Hxs5bDEGVe pic.twitter.com/Guxa6wbGya

— د.فواز الحصينان Fawaz Al-Husainan (@Drfawaz) July 6, 2020

Budget deficit

• government borrows money to finance spending.
• occurs if (Government spending) > (Tax revenues)

Trade deficits

• Occur when one economy borrows from another.
• This happens on an international level.