POLITEKNIK TUANKU SYED SIRAJUDDIN All rights reserved. No part of this publication may be reproduced, stored for production, or translated in any form or by any means, whether electronically, mechanically, photographed, audio visual recording and so forth without prior permission from Politeknik Tuanku Syed Sirajuddin. Diterbitkan oleh: Politeknik Tuanku Syed Sirajudddin (PTSS) Pauh Putra, 02600 Arau, Perlis ISBN POLITEKNIK TUANKU SYED SIRAJUDDDIN (PTSS) PAUH PUTRA, 02600 ARAU, PERLIS NO. TEL : 04-988 6200 NO. FAX : 04-988 6300 www.ptss.edu.my i
We wish to express our sincere gratitude to The Almighty Allah s.w.t for establishing us to complete this book – MACROECONOMICS: A study guide for Polytechnic students . We also wish to express our appreciation to the numerous parties who have enabled the realization of this book. The parties include Commerce Department, Politeknik Tuanku Syed Sirajuddin, Perlis, and all parties involved in the publication process directly or indirectly. We would like to thank our friends and colleagues for the assistance, guidance, and constant support from them during the publication of this book. We would also like to thank our family members who provided encouragement, patience, and support. Finally, we would wish readers a happy reading and apologize for any omissions and errors. We hope that this module will be beneficial to all, especially Polytechnics students so that they can have a clearer view of macroeconomics. JAMILAH BINTI HUSSAIN FARIZAH BINTI ARRIFIN NORHASYILA BINTI MINHAT ii ii
This book is designed to provide a frame of reference for Polytechnic diploma courses in majoring in business, accounting or related courses. The book is alternatively helpful to those who wish to keep in enhancing their knowledge on economics and provides information on the concepts of economics. This course also provides information in the importance of government policy to overcome the economic problem. The book has been structured into seven chapters, which cover all the topics addressed by Macroeconomics course syllabus adapted by the Malaysia Polytechnics. Students are guided to acquire the required skill in explain the impact of macroeconomics problem to the economics system in current economics trends. Finally, may this book be beneficial to students and others who directly or indirectly used this book as a reference. Hope this book be beneficial in helping them achieve an excellent result during the final examination. iii
iv
04 Macroeconomics 01 ROLE OF GOVERNMENT POLICY page 1-12 INTRODUCTION TO MACROECONOMICS CHAPTER 1 focuses on introduction of the field of economy from its macro aspect. In this chapter, students will be able to understand in detail macroeconomics goal, basic of aggregate demand and supply a expose current issue such as 4th Industrial Revolution and its impact on the economy. 02 page 13-30 NATIONAL INCOME ACCOUNTING CHAPTER 2 learn about the important concepts in national income accounting. In this chapter students will discuss method of calculating GDP, accounting problems and factors influence national income and uses of national income data. 03 page 31-54 DETERMINATION NATIONAL EQUILIBRIUM OF CHAPTER 3 focuses on determinant flow of income for two-sector, three- sector and open economic sectors Student will be able to understand how aggregate demand and aggregate supply components affect the national equilibrium. Besides this, students will be exposed to AD AS model and injection-leakage model that are used to calculate equilibrium level. 07 page 55-65 CHAPTER 4 focused on role of government in achieving government objective namely government revenue, government expenditure and sources of public debt. Beside that, this chapter also describes the importance of government policy to overcome the economic problem which is through fiscal policy, monetary policy and direct control policy. 05 page 66-80 UNEMPLOYEMENT AND INFLATION CHAPTER 5 focuses in detail about the economic cycle which is divided into few phases. This chapter also explains in detail two important variables in the economy, namely unemployment will learn the definition, types, the way to calculate the and inflation. In this chapter, students rate, effect and how to control the unemployment and inflation through government policy in the economic system. 06 page 81-95 MONEY AND BANKING CHAPTER 6 focused on money and banking system in Malaysia Students will now he role of money in economy and the reason for money demand. This chapter also explains in detail the terms used for various categories of money supply and also discuss in detail the banking system. page 96-117 INTERNATIONAL ECONOMICS CHAPTER 7 focusses on the concept of international trade. In this chapter, student will know the differences between domestic trade and international trade and the advantages and disadvantages of international trade. Besides that, it will discussed two important concepts on international trade; absolute advantage and comparative advantage vv
INTRODUCTION OF INTRODUCTION OF MACROECONOMICS MACROECONOMICS LEARNING OUTCOME: Explain the concept of macroeconomics Explain Aggregate Demand and Aggregate Supply Discuss 4th Industrial Revolution and its impact on the economy
MACROECONOMICS Though macroeconomics encompasses a variety of concepts and variables, there is three major concern of macroeconomics which are output, unemployment, and inflation. To explore further on the concept of macroeconomics we will look at the definitions, differences between microeconomics and macroeconomics, macroeconomic goals and problems in macroeconomic goals. . DEFINATION OF MACROECONOMICS Macroeconomics can be define as the branch of economics that studies the behavior and performance of an economy as a whole system, looking at how demand and supply of product, services and resources are determined and factors that influence them. It is concerned with aggregate level behavior of the entire economy. It differs from microeconomics, which deals with how individual economic players, such as consumers and firms, make decisions. . 1 1
MICROECONOMIC VS MACROECONOMIC MACROECONOMIC 22
Fleepit Digital © 2021