Macroeconomics studies the economy as a whole. While micro examined individual consumers and  firms, macro investigates all consumers, all firms and owners of resources and markets.  Instead of demand and supply we will study Aggregate Demand and Aggregate Supply.  You will have the opportunity for a detailed examination of the major macroeconomic issues facing countries’ economic growth, economic development, unemployment, inflation and income distribution.

Government policy plays a vital role in the economy as it seeks to achieve the following macroeconomic goals:

1. full employment
2. stable prices
3. economic growth
4. fair distribution of income
5. external balance between overseas trade and  payments

The economic strategies available to governments—demand-side policies, supply-side policies, direct intervention— to achieve these goals are introduced and evaluated. These policies are applicable to almost all areas of macroeconomics, international economics and development economics.

3.1 Measuring national income
3.2 Introduction to Development

• Circular flow of income

• Methods of measurement—income, expenditure and output

• Distinction between: gross and net national and domestic nominal and real total and per capita

Activities:

1. View the PP Lecture on Section 3.1
2. Read Triple A  Macroeconomics Module 3 A
3. Complete Lesson 1 Activity 10
4. Complete Lesson 2 Activity 11
5. Read this article and write a blog post that identifies five major ideas presented as to why the Japanese economy faces great challenges. (This is a difficult article but it provides a insightful analysis  of the Japanese economy. You are not expected to understand it all at this stage of your study of economics.)
6. View Section PP Section 3.2 Lecture
7. Reading Triple A Module 3 B
8. Develop a list of criteria to determine the “best” economy in the world
9. In your group decide on the three most important criteria and then decide on the three economies that your rate as among the best in the world.
10. Present your data to the class in any way. You can use any of the following Web 2.0 tools.
11. Two lessons for research and preparation of the presentation. Presentations following. Aim for 5-7 minutes.
12. A and B Class present on Monday 12 April, H Class present on Tuesday 13.
13. Write a brief blog entry that provides a link to your presentation. (Slideshare if you made a PP)
14. Blog Entry: After viewing all the presentation, write a post identifying your selection for the world’s best economy. Explain your choice. Also identify the one economic indicator that you found most compelling. Include this data in your post.
15. Concluding Activities: Write a 400 word response to the following question:

Explain three possible limitations of using GDP as a measure to compare welfare between countries. (10 Marks)

This will be administered as an in-class short essay test on Monday 19 April for A and B and Tuesday 20 April for H Class. You will have 20 minutes of writing time. We will use class time to review Sections 3.1 and 3.2 and highlight strategies to answer questions using the “explain” command term.

Review the PP slide presentation on Section 3.2.