1. Why should an MBA student, study Macroeconomics ?

2. Because you need to understand the national and international economic environment that you are functioning in. You need to know:

3. Why should an MBA student, study Macroeconomics ? your suppliers

4. Why should an MBA student, study Macroeconomics ? your suppliers customers

5. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors

6. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors legal system

7. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors legal system regulations

8. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors legal system regulations how to interpret economic decisions made by the:

9. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors legal system regulations how to interpret economic decisions made by the: –congress,

10. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors legal system regulations how to interpret economic decisions made by the: –congress, –the president, and

11. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors legal system regulations how to interpret economic decisions made by the: –congress, –the president, and –the Federal reserve system

12. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors legal system regulations how to interpret economic decisions made by the: –congress, –the president, and –the Federal reserve system

13. Why should an MBA student, study Macroeconomics ? your suppliers customers competitors legal system regulations interpret economic decisions made by the: –congress, –the president, and –the Federal reserve system the overall health of the economy.

14. What is macroeconomics ? macroeconomics is the study of the economy as a whole.

15. What is macroeconomics ? macroeconomics is the study of the economy as a whole. It is the study of

16. What is macroeconomics ? macroeconomics is the study of the economy as a whole. It is the study of total output

17. What is macroeconomics ? macroeconomics is the study of the economy as a whole. It is the study of total output growth rate of the GDP

18. What is macroeconomics ? macroeconomics is the study of the economy as a whole. It is the study of total output growth rate of the GDP inflation rate

19. What is macroeconomics ? macroeconomics is the study of the economy as a whole. It is the study of total output growth rate of the GDP inflation rate unemployment rate

20. What is macroeconomics ? macroeconomics is the study of the economy as a whole. It is the study of total output growth rate of the GDP inflation rate unemployment rate foreign sector

21. What is macroeconomics ? macroeconomics is the study of the economy as a whole. It is the study of total output growth rate of the GDP inflation rate unemployment rate foreign sector exchange rate

22. Distinguishing Features of Macroeconomics ? Data is aggregated to see the big picture rather than small economic units

23. Distinguishing Features of Macroeconomics ? Data is aggregated to see the big picture rather than small economic units Role of money is of critical importance to understanding macroeconomics

24. Macroeconomic Facts: The US 1-- Output and employment have been steadily increasing throughout the history

25. Macroeconomic Facts: The US 2-- Unemployment Rate [The ratio of those who are unemployed and are interested in and are looking for gainful employment but do not have jobs to total labor force] varies for year to year. We are interested in learning:

26. Macroeconomic Facts: The US 2-- Unemployment Rate [The ratio of those who are interested in gainful employment but do not have jobs to total labor force] varies for year to year. We are interested in leaning: –what determines the long run output and employment

27. Macroeconomic Facts: The US Unemployment Rate [The ratio of those who are interested in gainful employment but do not have jobs to total labor force] varies for year to year. We are interested in leaning: –what determines the long run output and employment –what causes year to year fluctuations in unemployment rates

28. Macroeconomic Facts: The US 3-- Money growth and Inflation seems to be very closely move together, most of the time.

29. Macroeconomic Facts: The US 4-- Balance of Trade [the difference between exports and imports] has been negative and rising. Does this mean that the rest of the world is more competitive or it has something to do with the US government budget deficits? More discussion in chapter 5.

30. Macroeconomic Facts: The US 5-- Exchange Rates [value of one currency in terms of another] have been widely fluctuating. But an index of all exchange rates show

31. Macroeconomic Facts: The US 5-- Exchange Rates [value of one currency in terms of another] have been widely fluctuating. But an index of all exchange rates show –a sharp rise in the first half of 1980s followed

32. Macroeconomic Facts: The US 5-- Exchange Rates [value of one currency in terms of another] have been widely fluctuating. But an index of all exchange rates show –a sharp rise in the first half of 1980s followed –a sharp reversal in the rest of the period until

33. Macroeconomic Facts: The US 5-- Exchange Rates [value of one currency in terms of another] have been widely fluctuating. But an index of all exchange rates show –a sharp rise in the first half of 1980s followed –a sharp reversal in the rest of the period until –a rise in the mid 1990s again.

34. Key Economic Issues 1-- What factors influence long term growth

35. Key Economic Issues 1-- What factors influence long term growth 2-- Why output and employment deviate from the long term trend

36. Key Economic Issues 1-- What factors influence long term growth 2-- Why output and employment deviate from the long term trend 3-- Role of money in affecting output, prices, and employment

37. Key Economic Issues 1-- What factors influence long term growth 2-- Why output and employment deviate from the long term trend 3-- Role of money in affecting output, prices, and employment 4-- What are proper role of macro policy

38. Key Economic Issues 1-- What factors influence long term growth 2-- Why output and employment deviate from the long term trend 3-- Role of money in affecting output, prices, and employment 4-- What are proper role of macro policy 5-- The two way relationship between interdependence (Globalization), trade and exchange rates