what is the macroeconomic theory?

Question

i need from any one to answer that question to explane the real GDP, nominal GDP, the tools of macroeconomic, the major activites and the aggregate supply and demand with it's curve for eash one.pleas answer it with good explane and more details

Answer 1

Real GDP is nominal GDP adjusted for inflation. Nominal GDP is the sum of the output of a country in a given year. Generally, it is the sum of the consumption spending, investment spending, government spending and exports minus imports.

Aggregate demand is influenced by consumer expectations, GDP per person, inflation, etc. It is downward sloping and to the left to reflect the propensity of consumers to consume more as prices are lowered.

Aggregate supply is determined by producer expectations, interest rates, money supply, etc. It is upward sloping and to the right to show that as prices increase, suppliers produce more.

Answer 2

It isn't a single theory or idea. It is all the theories and ideas that are used to quantify or explain the macro side of the economy (the larger picture if you will). It deals with models of national income determination, unemployment, inflation, and economic growth. It looks at the domestic economy and international trade. There are also conflicting models between Monetarists, the New Keynesians, and New Classicals. It isn't a one-line answer that you can throw about. You may as well ask what is science theory, or what is philosophy theory. There are too many intricacies to be explained here. Pick up some books and start reading. Edit: I notice Wikipedia is being quoted earlier on. It is fair enough in gaining you a bit of insight into something, but it is academic suicide to go on quoting it and using it as fact. I really encourage you to pick up books rather than using wikipedia for anything indepth.

Answer 3

That's a lot to explain and understand in Yahoo Answers. Your best bet would be to read about these in your Macroeconomic textbook. Then if you still don't understand, ask your professor/teacher questions.

Answer 4

In short macroeconomics focuses on two things:
1. fiscal policy
2. monetary policy

Know that and all will be good

Answer 5

Macroeconomics is a major branch of economics that deals with the performance, structure, and behavior of the economy as a whole (Snowden and Vane 2002). Macroeconomists study and seek to understand the determinants of aggregate trends in the economy with particular focus on national income, unemployment, inflation, investment, and international trade. In contrast microeconomics is primarily focused on the determination of prices and the role of prices in allocating scarce resources (Blaug 1985).

While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: The attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income).

Macroeconomic models and their forecasts are used by both governments and large corporations to assist in the development and evaluation of economic policy and business strategy
A region's gross domestic product,or GDP, is one of several measures of the size of its economy. The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time. Until the 1980s the term GNP or gross national product was used in the United States. The two terms GDP and GNP are almost identical. The most common approach to measuring and understanding GDP is the expenditure method:

GDP = consumption + investment + government spending + (exports − imports)
"Gross" means depreciation of capital stock is not included. With depreciation, with net investment instead of gross investment, it is the net domestic product. Consumption and investment in this equation are the expenditure on final goods and services. The exports minus imports part of the equation (often called cumulative exports) then adjusts this by subtracting the part of this expenditure not produced domestically (the imports), and adding back in domestic production not consumed at home (the exports).

Economists (since Keynes) have preferred to split the general consumption term into two parts; private consumption, and public sector (or government) spending. Two advantages of dividing total consumption this way in theoretical macroeconomics are:

Private consumption is a central concern of welfare economics. The private investment and trade portions of the economy are ultimately directed (in mainstream economic models) to increases in long-term private consumption.
If separated from endogenous private consumption, government consumption can be treated as exogenous, so that different government spending levels can be considered within a meaningful macroeconomic framework.
In economics, the nominal values of something are its money values in different years. Real values adjust for differences in the price level in those years. Examples include a bundle of commodities, such as Gross Domestic Product, and income. For a series of nominal values in successive years, different values could be because of differences in the price level. But nominal values do not specify how much of the difference is from changes in the price level. Real values remove this ambiguity. Real values convert the nominal values as if prices were constant in each year of the series. Any differences in real values are then attributed to differences in quantities of the bundle or differences in the amount of goods that the money incomes could buy in each year. Thus, the real values index the quantities of the commodity bundle or the purchasing power of the money incomes for each year in the series. The nominal/real value distinction can apply not only to time-series data, as above, but to cross-section data by region or household characteristics