Why are macro-economists concerned with the "aggregate"?
551024
Macro means large, Micro means small.\n\nIf you took the sum of every indivudual demand curves, you would have the aggregate.\n\nExample:  Person A would demand 5 units at $3.00 while Person B would demand only 4 units at $3.00.  The aggregate demand curve at $3.00 would then be 5 + 4 or 9.\n\nGenerally speaking, for normal goods, as the price rises, people demand less ... if the price were $4.00 in the above, then Person A might only demand 2 units and Person B may only demand 3 units.  Generally this reflects the opportunity cost of th next best alternative.  As you are required to spend more on one good, you can afford that much less of another ... so the trade off's become greater.
1153868
The point of fault, which came under scrutiny too late, is actually a big one. The general functions are researched and performed very thoroughly, but I think there is general agreement among high-level economists and experts that the board which is to review the Regulation T limit, very much as the much publicized interest rate meeting, severely failed in their responsibility in the 90s. If they had tightened the actual fund requirements for margin accounts during the early 90s' (they never changed it, incidently) we would have had a much more stable economy over the past 20 years, and a much stronger one today.
1024303
Interest rate worries are the main concern.  Bernake is lookingot hike the prime another .25 caus eof inflation, more then anything thisis keeping all rallies down.  Don't forget the tech bubble burst from 2001 happened when we hit 6.5% interest and many investers think a ressecion will hit again if it goes that high.  Bernake clearly doesn't know what he is doing.
823137
It's a way to gauge interest rates, but a poor way to gauge personnel inflation.  If you love cheese and movies and have serious health care problems, your personnel inflation rate will probably be several times higher than the CPI.  I was watching one show where this guy's personnel inflation rate jumped 1,500% from the previous year just because of what he bought.
354548
Do you mean micro-econ. and macro-econ.?
643106
In economics, inflation is an increase in the money supply or an increase in prices.\n\nThe two most obvious versions of this, each held by some economists to be "real" inflation, are for prices of goods and services in the currency in question to rise, or for the money supply to increase.\n\nPrice inflation is closely akin to "cost of living" measurement, where a "basket" of goods, and comparing the prices at two intervals, and adjusting for changes in the intrinsic basket. But, technically, this is not raw inflation; it is an attempt to determine real-life value of money compared to the members of the society in question, adding other factors like increased expectations.\n\nRaw inflation measurement does not adjust for expectations, but directly measures the change in the price of goods.\n\nThere are different measurements of price inflation, depending on the basket of goods selected. The most common measures are of consumer inflation, producer inflation and GDP deflators, or price indexes. The last measures inflation in the entire economy.\n\nGeneral price inflation is a fall in the purchasing power of money within an economy, as compared to currency devaluation which is the fall of the market value of a currency between economies. The extent to which these two phenomena are related is open to economic debate, though the comparison of a currency to foreign currencies is based on investor demand for currencies, and therefore must at least partially be a matter of perception.\n\nBoth of these are often caused by money being added to an economy, either as printed currency or as virtual money lent to banks or other entities. This is called currency inflation, and can cause price inflation or currency devaluation. But, because the general amount of wealth gradually changes in an economy (as long-lasting things are created, new technologies invented, et cetera), a small amount of currency inflation need not cause price inflation.\n\nSome terms related to inflation:\n\ndeflation is a rise in the purchasing power of money, and a corresponding lowering of prices (the opposite of inflation). \nDisinflation refers to slowing the rate of inflation, that is, prices are still rising, but at a slower rate than before. \nReflation is a term used to denote inflation after a period of deflation, meaning inflation designed to restore prices to a previous level. \nHyperinflation is rapid inflation without any tendency towards equilibrium - that is, an inflation that produces even more inflation. \nIn some contexts the word "inflation" is used to mean an increase in the money supply, which is seen as a cause of price increases. Some economists (of the Austrian school) still prefer this meaning of the term, rather than to mean the price increases themselves. Thus, for example, some observers refer to inflation in the 1920s in the United States even though the prices of some baskets of goods were not increasing at the time. The word "inflation" will be used to refer to a general increase in prices unless otherwise specified.\n\n\nEconomic role\n\nOne effect of small steady inflation is that it is difficult to renegotiate some prices, and particularly wages and contracts, downwards, so that with generally increasing prices it is easier for relative prices to adjust. Many prices are "sticky downward" and tend to creep upward, so that efforts to attain a zero inflation rate (a constant price level) punish other sectors with falling prices, profits, and employment. Thus, some business executives see mild inflation as "greasing the wheels of commerce". Efforts to attain complete price stability can also lead to deflation (steadily falling prices), which can be very destructive, risking bankruptcy for companies that do not react, ultimately resulting in recession (or even depression).\n\nMany in the financial community regard the "hidden risk" of inflation as an essential i
652208
I'm in a economics class too, and they are things that are used to predict if the economy is going into a period of contraction or growth. Some examples are the stock market, the real GDP, prices, and sales.
423116
a little less than "very angry -commodity analysis"\njohn
644443
Our economic policy is Nixonomics (Keynesian policy), so you can imagine that the result will be pretty much the same.  I expect inflation (currently observed in prices for both housing and raw materials like oil and metals), and over the longer term, some weakening growth (recession). In the days of Gerald Ford, it was called stagflation.  If we elect a responsible leadership that can control spending, we might be able to turn things around and forestall that slowdown, but sadly, I just don't see that happening.  Very few politicians on either side of the aisle are talking about responsible spending these days.  (OK, maybe they're talking about it, but they're sure not DOING it.)
459508
Macro (meaning large) Economics involves the economy as a whole - the overall functioning of the whole economy.  As opposed to microeconomics which deal with the workings of a single industry (or several industries).  Microeconomics would look at supply and demand of a single product such as oil.  When Katrina hit and disrupted the oil supplies and the oil industry in the Gulf of Mexico, oil prices shot up (supply and demand).  That is Microeconomics.\n\nMacroeconomics would look at that same event (Hurricane Katrina) and examine how that event would impact total good produced.  How would the rise in oil prices affect the shipping of goods (and the airline industry in general) and how would that reduction in goods shipped impact employment in affected industries?  How should the Federal Reserve respond and adjust interest rates and the money supply to dampen those negative effects?\n\nWhat would the impact of Katrina be on quarter-to-quarter growth in the economy?
559664
I don't think anyone really talks about it.  No one even tries to justify it anymore.  We just try to make believe it isn't there.  Of course, it isn't larger than our GDP yet, so that's a good thing, but on the other hand, the GDP isn't sitting around waiting for the government to spend it, either.  GDP belongs to individuals, not to the government.  So the idea that a high GDP justifies a high government debt is ludicrous unless the government plans to nationalize all the assets in the nation.\n\nThere are no guidelines or rules for 'bankruptcy' for nations.  This is why some of the more insolvent nations haven't figured out what to do about their even more serious debt problems.  This is at the root of the 3rd world debt crisis.\n\nIf everyone stopped lending to the U.S., we'd probably have to stop spending so much.  Maybe that wouldn't be such a bad thing, hmmm?
318872
It isn't Bad. It is bad for people who wanted to borrow money - for example the government or home buyers. But it is good for people looking to invest money as it indicates that can get a higher returns. As for reading more into it - it indicates demand and hence either good (boom) or bad (inflation) - usually both in the end
1102690
Besides energy prices rising, their was an influx in our money supply through credit bureau's (most notably because of the housing boom), which in turn, raises prices throughout the economy.  \n\nTheir concerned because the GDP is not keeping up with inflation as it should.
80642
Keynesian economics is one philosiphy of money.  Monetarism theory is the other philosiphy of money.  Monetarists believe there is direct causual relationship between the money supply and economic activity.  Where as Keynisian economics is interest rate oriented.  e.x. If interest rate goes down, Investment goes up, therefore GDP goes up.  Remember that GDP, which is a measure an aggreate measure of our economy, is made up of Consumption, Investment, Government expenditures, and Net exports.  And that Investment is a function of interest, while Consumption is a function of income.
527498
Hi,\nFresh ideas keep the world of economics from stagnating. No one likes to get stuck in a rut and when a new idea or method is proposed, the old ones must adapt to keep up with improvments or, get left behind.
172066
Economics studys the human behaviour with respect to needs and source....human beigns do not have one predictable behaviour ...  Thats the reason .....
1140485
It would take a whole course to give you a comprehensive response. You might consider signing up for one at a local college.\n\nMeanwhile, in a nutshell, here's what's happening at this time in the economy: The Fed is always concerned with keeping economic growth at an acceptably high level and keeping the rate of price inflation at an acceptably low level.\n\nWhen the economy gets cooking, the money supply expands (that's actually what inflation is). The business community spends more to satisfy their higher level of business activity, and consumers feel rich so they spend more.\n\nThe US economy has been on a five-year expansion. It's reaching the level where inflation is becoming a serious problem. So the Fed has been raising interest rates to try to keep growth from getting too fast. But consumers have borrowed huge, huge amounts, including in mortgages, so if the Fed "slams on the brakes" too hard by raising interest rates too much, the risk is that a severe recession or worse could set in, triggered by that mountain of debt.\n\nMeanwhile, other economies, especially China and India, have been growing at very high rates. They are gobbling up all of the commodities they can find - oil and gas, lumber, base metals, etc. That adds to inflation.\n\nWe are in the midst of a commodities boom. Mining and energy stocks have come a long way up but have a long way still to go. Many companies have done poorly for several years because they don't operate well in a higher-inflation environment (their costs go up faster than they can raise prices).\n\nThat's a lot of information in one short message. As I said, look into taking an economics course. I was a chemist once, but enrolled in business school and loved every minute of it because of the fascinating and useful things I learned.\n\nBest of success.