Thursday, February 9, 2006:
i tried looking at econs.. i guess its not THAT difficult to understand. i know bits and pieces now. hehe.
okay lets see:
macroeconomics - study of the economy as a whole.
microeconomics - study of the behavior of individual sectors of the economy
GDP is THE main stats measure of economic performance. it is the total market value of goods and services produced in a country over a period of time
economic indicators - indicate the state of the economy at a particular point in time
leading indicators - predictors of the soon-to-be changes in the economy, eg interest rates
coincident indicators - move in line with the level of economic activity, eg GDP
lagging indicators - only occur after a change in the trends of the economy, eg employment
equilibrium - when the desired level of expenditure exactly equals the level of output produced, and income earned from that production, ie sum of E= sum of O=sum of Y or S+T+M=I+G+X (leakages=injections). when the economy is in equilibrium, it would be in a state of balance, and have no tendency to change.
whenever disequilibrium occurs, the economy will try to adjust so that equilibrium can occur. this is only temporal. the economy soon changes back to disequilibrium because of rising and falling in levels of income and output. this always repeats in a cycle.
when
S>I-less goods and svcs demand
-stocks increase
-decreased output
-unemployment, less working hours
-hence less income
-less savings
-less investment & less demand for goods and svcs
-output reduced
-cycle repeated
hence we see that inequalities of leakages and injections cause
fluctuations in the economy.
AE = C+I+G1+G2+(X-M)okay. thats all i've done. haha. actually there's more, like the circular flow model and the keynesian expenditure model.. but i cant really expound on it cos i need the graphics. :S econs is crazy. all the alphabets. i get really confused. like i spend 10 mins in class thinking if I is investment or imports or income or interest. its making me go crazy. and then the teacher is already on the next bit and i'm like what's going on! hahah. oh well. but mrs cassedy is really nice. she's going to go through everything with me on tues and thurs mornings before school starts! how nice! (: maybe i'll catch up with the class. hopefully! there are like.. hmm. 9 people in my econs class! you know what. i like classes small. haha. i think there isnt any class of mine which exceeds 15, besides english which i think is slightly less than 20. haha. (:
okay. i should go sleep now otherwise i'll drown in the pool.
ITS MY BIRTHDAY IN HALF AN HOUR! (its 11.30 now)
and o level results are coming out in... 15 hours time! gahhh.
a shout of praise.
11:08 PM
