Macroeconomics Notes PDF

11/09/2024 -Global economy study of the performance of national and global. - -Branch of eco...

11/09/2024 -Global economy study of the performance of national and global. - -Branch of economics that deals with the structure , performance, behaivor and decision-making in economics. Macroeconomics studies : - Interest Rate - Need Work Predictions of macroeconomics - Inflation ↳ Data - GDP Historical Tendencies -Government Policies ↳ Theoretical Models * Great Depression (1929) - Prices dropped - High Tariffs Bank Failure unequality - - - Overproduction GOASA ECONOMIC measurement S D -> Limit unemployment rate Unemployment · don't affect Anything already produced PIB Keep prices · Stable - > Inflation Rate GDP : (not regulated by anyone Measures the economic · performance of a country. · Total monetary value of all goods and services produced within a country's boarders in a specific time period. for of all finished services produced · Accounting the total value goods and. ① GDP = c + 1 + 6 + (X - M) C : Consumption 1 : Investments : Government spending INX) : Net Exports = Exports - Imports ② GDP per capita =P population Per capita : per person mas recientresto 10 ③ % of change = I y = year in different Percentage of GDP change years. Mexico's GDP per capita -1 year MXN] - 11 490 , 000 USD -223 877s /1466 ,000000000 = 2022 : , , MXN 2022 - 2021 1313 000 , , 000 , 000 (100) = 11. 65 % /S - 2021 1406 , 000 , 000 , 000 Unemployment - Goal = Limit unemployment rate below 4 5. % When this rate is low , jobs are secure and relatively easy to find. · To find this rate , economists calculate the size of the labor forc. This rate represent the number of people that are looking for a job. -  Unemployment rate rate (100) employment = is unemployme rate Inflation Rate The annual of in the price level. percentage rate change - A price index of of price of services in measures the avarage price a class goods or services relative to the those same goods or given base year. - a Inflation = Current CP1- Historic CPI (100) Rate Current CPI CP1 = consumer Price Index what is ? How does it work ? - The way government manage public revenues. Government revenue : how they gain money Government Government collects money through taxes Earn income from taxes , fines or sales uses fiscal policy to raise money. of public assets. - It affects a country's economy inflation. Government expenses : Door management: increased public debt or Used for public expanses, such well-balancement : economic growth as paying salaries. TYPES OF POLICIES I que se I que no se Expansionary - > mueval Contradictory - mueval Reduces spending or increasing taxes Reduces spending or increasing taxes to cool the economy to stimulate the economy.. Used when and economy grows rapidly - - More demand created there is an inflation risk. used in times of recession - Reducing · jobs money circulation to keep prices - can create and increase under control. consumption International financial org. 11Fo Global economic stability financial assistance advice and policy : Poverty Alleviation and development with countries to reduce : Work developing poverty International Trade in competition creating enforcing for international trade , promotion of fair : Crucial and rules. Promoting Global Cooperation and Coordination Allowing economic countries to collaborate on challenges. : common Crisis Management and Support : Responses when countries face economic crisis or natural distasters.  - financial Offering aid and resources to developing countries and looking self-sufiency. International standards , like anti-corruption set to build trust and stability in Transparency and Rule of Law in the global economy : , corporate governance , and tax transparency are , helping global economy. Navigating Globalization : Help manage the impact of globalization by promoting policies that enhace international cooperation and prevent negative spillover effects from national economic policies. ConflictP revention : Provide countries w/ a legal framework for adressing trade disputes peacefully , preventing conflicts from escalating into trade wars. Voluntary exchange between two parties in requirement of each other's resources. Basis : Necessity - Mercantilism Producing everything inside of my country Exports to sell nemesis :. :. L do worked because not at free trade not every country was good producing certain products. We can't like without Trade trade - Exchange of goods / S to manufacture them Importing goods and & Trade - Home Trade Foreign then exporting then to sell to another country. / I - Internal/National Result / I - Entrepot & wholesale Retail Importing to produce, exporting to sell rt Middle between & retail - producer step before importTrade consumer to the Products sent outside country ( of my countries. stores Home (internall trade wholesale - conducted within a country's borders. The "middle man" between retailers and produced ~ -can local , national Most shops be regional or - producer wholesale customers Divided into categories. - - - 2 live without each other. symbiotic They : can't Trade Deficit > - More imports than exports & Lack of something Trade Surplus- > More exports than imports L Benefit  S If result is deficit get balance negative To the - value of exports - imports positive = surplus of mercantilism Advantages of mercantilism Disadvantages - Bad self-suffiency quality products - Gold accumulation Limited Entrepeurnership - - - Local Businesses More expensive products Less competition - Specialization opposite of mercantilism - ↳ Free trade > capitalism - - their Each country economically gains strenght by investing - on specific habilities (industries ( Adam Smith said specialization divided labour - economical growth. + = intercambio internacional - comparative advantage ↳ countries that can do the same that another Advantageality Disadvantages codependency - trade 100peration Only promotes multinational companies - - More diversity - - Less demand cheaper product - - imports , quotas guarding industries against foreign competition by of tariffs taxes on Policy of protecting or means , or other restrictions. Accept free trade  4 types Quotas subsides Tariff standarization ↓ zu Imports Tax ai Taxes on imports Regulating prices ↓ ↓ ↓ ↓ local Raise prices Quantity Guidelines ↓ Restrictions Mercantilism doesn't accept imports & exports but protectionism yes 1776 1800 1500 - 1608 1708 Adam Smith Criticizes Free trade movement mercantilism gets strong "invisible hand" Colonial Mercantilism peak in Europe L Free markets lead to economic David Ricardo introduced comparative European colonies prosperity. Gold accumulation advantage. I GBR Spain Frances used colonies , , as raw materials market L colonies couldn't trade 1868 1870 - 1914 1929-1938 U.. S Tariffs Europe Great Depression After Civil war , protectionism Germany & France adopted protectionism us raising tariffs on 20 , 000 products policies help the.. U S grow its policies to shield their industries from causing a collapse to world trade. steel & textile advantage British competitions.  1947 1947-1950 1990 ECC (pre European Union protectionism prevents of rise globalization promotion of trade formed as common market NAFTA liberalization ↓ in Europe WTO Tariff reduction through ↳ Free trade in member were created negotiation states 2002 2016 2020 - 2020 Steel Tariffs Populist protection COVID wTO removes them Trump Medical equipment Brexit "Protect" their own country  - & Infrastructure Economy Economic practices made in digital spaces Internet, cloud computing (Internet , data analysis + devices Types : al e-commerce : amazon & mercado libre b) digital service : Netflix & Spotify c) Fintech : Mercado Pago , Clip , Pay Pal examples in Mexico : Clip , Kavak - Disadvantages Benefits V Less local jobs v More options & supply V division Digital ~ Maximizing profits ~ & risk privacy security v New Business model > - Uber , Didi... (freelance ~ Tax & Regulation challenges