Prepared By Mr. Bin Chhom3 The Diverse Fields of Economics Examples of microeconomic and macroeconomic concerns ProductionPricesIncomeEmployment Micro economics Production/Output in Individual Industries and Businesses How much steel How many offices How many cars Price of Individual Goods and Services Price of medical care Price of gasoline Food prices Apartment rents Distribution of Income and Wealth Wages in the auto industry Minimum wages Executive salaries Poverty Employment by Individual Businesses & Industries Jobs in the steel industry Number of employees in a firm Macro economics National Production/Output Total Industrial Output Gross Domestic Product Growth of Output Aggregate Price Level Consumer prices Producer Prices Rate of Inflation National Income Total wages and salaries Total corporate profits Employment and Unemployment in the Economy Total number of jobs Unemployment rate
Prepared By Mr. Bin Chhom16 2- Employment, Unemployment and the Labor Force PaBmankargareF VI¬GnikmµPaB = Employment) sMedAeTAelIcMnYnGñk eFVIkar eBjv½y ¬tamc,ab; enA shrdæGaemrikcab; BI16qñaMeLIgeTA¦mankargareFVI. PaBKµankargareF VI¬nikmµPaB = Unemployment) sMedAeTAelIcMnYnGñk eFVIkareBjv½yEdlminRtUv)an eKeRbI b:uEnþkMBugEtEsVgrkkargareFVI.
Prepared By Mr. Bin Chhom28 We can calculate real interest rate in mathematical terms: r = i – I r: the real interest rate, i: the nominal, or market, interest rate, I: the inflation rate,
Prepared By Mr. Bin Chhom29 Real interest rates in the years following: YearInterest rate %Inflation rate % Real interest rate % 19706.55.70.8 19755.89.1-3.3 198011.513.5-2.0 19818.104.22.168 19907.55.42.1 19922.214.171.124 20005.93.42.5