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1、UserSONPR:JobEFF01417:6264_ch01:Pg0:23907#/epsat100%*23907*Fri,Nov9,200111:52AMpartIIntroductionUserSONPR:JobEFF01417:6264_ch01:Pg1:21266#/epsat100%*21266*Fri,Nov9,200111:52AMCHAPTERONETheScienceofMacroeconomics1Thewholeofscienceisnothingmorethantherefinementofeverydaythinking
2、.—AlbertEinstein1-1WhatMacroeconomistsStudyWhyhavesomecountriesexperiencedrapidgrowthinincomesoverthepastcenturywhileothersstaymiredinpoverty?Whydosomecountrieshavehighratesofinflationwhileothersmaintainstableprices?Whydoallcountriesexpe-riencerecessionsanddepressions—recurren
3、tperiodsoffallingincomesandris-ingunemployment—andhowcangovernmentpolicyreducethefrequencyandseverityoftheseepisodes?Macroeconomics,thestudyoftheeconomyasawhole,attemptstoanswertheseandmanyrelatedquestions.Toappreciatetheimportanceofmacroeconomics,youneedonlyreadthenewspapero
4、rlistentothenews.EverydayyoucanseeheadlinessuchasIN-COMEGROWTHSLOWS,FEDMOVESTOCOMBATINFLATION,orSTOCKSFALLAMIDRECESSIONFEARS.Althoughthesemacroeconomiceventsmayseemabstract,theytouchallofourlives.Businessexecutivesforecast-ingthedemandfortheirproductsmustguesshowfastconsumers
5、’incomeswillgrow.Seniorcitizenslivingonfixedincomeswonderhowfastpriceswillrise.Recentcollegegraduateslookingforjobshopethattheeconomywillboomandthatfirmswillbehiring.Becausethestateoftheeconomyaffectseveryone,macroeconomicissuesplayacentralroleinpoliticaldebate.Votersareawareof
6、howtheeconomyisdoing,andtheyknowthatgovernmentpolicycanaffecttheeconomyinpowerfulways.Asaresult,thepopularityoftheincumbentpresidentriseswhentheecon-omyisdoingwellandfallswhenitisdoingpoorly.Macroeconomicissuesarealsoatthecenterofworldpolitics.Inrecentyears,Europehasmovedtowa
7、rdacommoncurrency,manyAsiancountrieshaveexpe-riencedfinancialturmoilandcapitalflight,andtheUnitedStateshasfinancedlargetradedeficitsbyborrowingfromabroad.Whenworldleadersmeet,thesetopicsareoftenhighontheiragendas.2
8、UserSONPR:JobEFF01417:6264_ch01:Pg2:24475#/epsat100%*24475*Fri,No
9、v9,200111:52AMCHAPTER1TheScienceofMacroeconomics
10、3Althoughthejobofma
