Exogenous variable (size) – The figures that we insert into a model such as oil Endogenous variable (size) – Results from the model, GDP growth Descriptive and normative analysis Descriptive – to examine the effects of a change in economic policy. Normative – adds assessments of the outcome is good / bad based on objective … Read more

The reason for the Cold War To understand the Cold War was all about, one must know a little about the background. It was the result of a series of events and misunderstandings, and the difference between two political ideologies, communism and capitalism. In 1917 there was revolution in Russia and the Communists took power. … Read more

Macroeconomics – Key Concepts

Posted in Macroeconomics on the 03.02.2012

Macroeconomics deals with the major features of a country’s economy: Economic Growth Business cycles Unemployment Inflation Balance of payments Business cycles and economic crises: Economic Cycles / makro√łkonomske fluctuations: It is when economic activity and employment fluctuates over time. Economic boom: It is when there are major economic activities and low unemployment. Recession: It is … Read more

Macroeconomics – Lecture Notes

Posted in Macroeconomics on the 03.02.2012

Production Process IN – Raw materials / semi-finished – Holdings of capital – physical capital (buildings, machinery, etc.) – Labour UT (Xi) – The product / service that will enrich our lives UT must be worth more than the view that there should be value added Production is all transformations that people are interested in. … Read more