Monday, June 18, 2012

Macroeconomic Theory of the Division of Economic

Macro-economic

Macroeconomy, what is it ? Persons, other than as social beings, is also an economic creature called Homo Economicus. This is evidenced by the fact that humans are creatures who have the desire. Human desires are very diverse and not limited. Therefore, to fulfill his wish, to perform a variety of human effort or desire or need for businesses to be realized.

Macro Economics - Economics

Based on this, so was born the so-called science of economics. There's Economics is the study of human behavior in order to meet the needs of life are not limited by the resources or the means of satisfying the requirement is limited in order to achieve prosperity. What man sought in the so-called subsistence economic activities. In its development, economic science divides itself in theories of the so-called micro economics and macro economics. In general, economics is divided into three groups, namely the economic theory, descriptive economics and applied economics.

1. Economic theory

Economic theory of economics is the study economics is based on theories. Economic theory studies the relationship of economic events with other economic events and to formulate a law of economics. Thus, economic theory is used as a reference for the consideration of policy-making aimed at the prosperity and welfare. Economic theory gives rise to micro-economic theory and macroeconomic theory.

2. Descriptive economics

Further descriptive economics, economic science that describes the circumstances or the economic problems in the form of figures, graphs, curves, or other form of presentation. Through these forms of presentation, will be seen depictions of actual conditions that can be used for an analysis of economic problems. Descriptive presentation of the economic comparison of the data can usually be seen correspond to the period or period of time, and estimated data will appear in the future.

3. Applied Economics

Finally, the applied economics is the application of economic theories to solve specific economic problems, such as inflation and unemployment problems. In the presence of applied economics, is expected given the existence of solutions to economic problems that arise.

Macro Economics - Methods in Economics


In economics, human beings always want maximum satisfaction in profit or wealth. This suggests that economic principles are basically owned by the outward man, so man is referred to as economic beings. Economic activities undertaken in order to give satisfactory results in meeting the needs, the human need economics. In studying economics used two kinds of methods, the methods of deduction and induction methods.

1. Deduction method

Deduction method or the so called abstraction, is a method or way of studying economics that originated from the specific events leading to the common events that are special. For example, the size of the demand for a production of goods depends on the size of the earned income, price level, as well as market tastes.

2. Methods of induction

Meanwhile, the method of induction is a method of investigation that began with a special event that is further used to describe a common event. This method is based on empirical factors, such as price increases that occur when the holiday. This is in conflict with economic law who stating that the the demand akan go down when prices rise. This is due to the fact that during the holidays will arrive, the demand still rising despite the rising price level.

In studying economics, usually both of these methods can be used simultaneously or as a comparison.

Comparison of Micro-Economic Theory and Macro Economics

The presence of micro economics and macro economics are the result of the development of economic theory. Micro economics is that economic theory is a narrow view of economic problems or special. Thus, according to this theory of economic issues viewed individually or from the point of a case by case. For example, studying the behavior of producers, consumer behavior, corporate profits, and so on.

Meanwhile, macroeconomic theory is the discussion of economic issues is viewed as a whole or broad in scope. For example, on economic growth, inflation, unemployment, etc., that apply nationally.

Thus, the macro-economic role in the development of theories that can help solve the economic problems nationwide. That is, macroeconomic theory is a part of economics that studies the workings of the mechanism of the economy as a whole. Study the macroeconomic objectives are usually to find out the laws of economics or general conclusions necessary to solve the economic problems are also macro or large scale.

The division of economic theory into macroeconomics and microeconomics also resulted in the division of the scope of both. Here is a comparison of the scope of micro and macro economics.

1. The scope of micro economics include :
  • Price theory
  • The theory of demand and supply
  • The theory of the production costs of a company
  • Elasticity
  • Search for maximum profit company

2. The scope of the macro economy include :
  • Level of national income
  • National investment
  • The amount of money in circulation
  • The inflation rate
  • The unemployment rate and employment

Based on the scope of economic theory can be used to analyze the problem in accordance with the distribution of micro-economic theory and the macro economy. Both play an important role in resolving the economic problems facing the community or a country.

Macroeconomic Problems

In accordance with the scope of macroeconomic theory, macroeconomic problems that occur in a country's economic activity in aantaranya is as follows.

1. Inflation

Inflation is a situation which showed an increase in the price of goods on an ongoing basis. This condition illustrates that the amount of money circulating in the community more than the number of outstanding items. If fixed incomes, while the prices continue to increase the purchasing power will decline. If this happens then the welfare or prosperity of the community will come down thus creating poverty.

2. Unemployment

Unemployment is an economic problem not only in developing countries, but also developed countries. Unemployment will be a burden because unemployment is an indicator of community wealth. The more unemployment, it is difficult to obtain welfare, crime will increase.

The impact of unemployment is widespread. Therefore, the problem of unemployment is a national problem that is included in the study of macro-economic problems. Unemployment problems associated with the least employment. Limited employment indicates economic activity that is not running optimally.

3. Lack of Investment

Investment is one important factor in developing economic activities. A capital investment factor in running a particular business form. Investment also plays an important role in opening up employment opportunities to reduce unemployment. Investment in the macro economy can be done by government and private sector involving local and international investors. To be able to invest, have higher incomes than their needs. As for international investment, an important factor to consider is the stability and security of the resources offered. When the investment has limited the economy of a country will have trouble. This is because without investment means economic activity that run short of capital.

Of the three issues that have been mentioned. It is understood that the theory of macroeconomic theory is the result of the division acting preformance in resolving major issues relating to economic activity. In addition, the theory has a macroeconomic point of view is widespread in view of the problems occurred. Unfortunately, the distribution of economic theory, one of which focused on the macro economy, have not been able to provide solutions to economic problems that occur.

This theory is able to analyze the cause of the problem, but a concrete solution has not been implemented properly. So that all three macro-economic issues that have been mentioned still happened. This suggests, at the macro economic Indonesia's economy can not be said to be established. However, the welfare and prosperity of the economy must still be pursued as one of the country.

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