Two branches of Economics {Micro, Macro}
- Microeconomics focuses on patterns of supply and demand and the determination of price and output in a certain industry. (i.e. Coffee, PC, Cars, etc) It analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households level. For example, people who have any desire to start their own business or who want to learn the rationale behind the pricing of particular products and services would be more interested in this area.
- Macroeconomics is a national, regional, or global level behavior such as GDP, unemployment, inflation/deflation, international trade and finance. However to understand large scale behavior, understanding of micro level is crucial. For example, to understand why a change in interest rates leads to changes in real GDP, we need to understand how lower interest rates influence decisions, such as the decision of how much to save, at the firm or household level.
Keynesian Theory
An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability. A supporter of Keynesian economics believes it is the government's job to smooth out the bumps in business cycles. Intervention would come in the form of government spending and tax breaks in order to stimulate the economy, and government spending cuts and tax hikes in good times, in order to curb inflation. - This is an opposite thoughts from Adam Smith's invisible hand.
Monetarist Theory
This theory states macroeconomic performance is mainly determined by the supply of money and central banking. (Milton Friedman – Nobel Prize in Economics)
GNP – Gross National Product
The centerpiece of macroeconomic.
GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens. GNP is one measure of the economic condition of a country, under the assumption that a higher GNP leads to a higher quality of living.
GNP ranking:
http://www.studentsoftheworld.info/infopays/rank/PNB2.html
Amazing that what US is making ??
List of countries by GNP(GNI) (nominal, Atlas method) (millions of US$)[5] (Top 10)
Rank | 2010 | 2009 | 2008 | |||
1 |  * United States | 14,600,828 | * United States | 14,223,686 | * United States | 14,506,142 |
2 |  * China | 5,700,018 | * China | 4,857,623 |  * Japan | 4,853,005 |
3 | * Japan | 5,369,116 | * Japan | 4,785,450 | * China | 4,042,883 |
4 |  * Germany | 3,537,180 | * Germany | 3,473,814 | * Germany | 3,504,510 |
5 |  * France | 2,749,821 | * France | 2,750,418 |  * United Kingdom | 2,799,960 |
6 | * United Kingdom | 2,399,292 | * United Kingdom | 2,538,578 | * France | 2,700,770 |
7 |  * Italy | 2,125,845 | * Italy | 2,114,668 | * Italy | 2,115,482 |
8 |  * Brazil | 1,830,392 | * Brazil | 1,563,126 |  * Spain | 1,449,186 |
9 |  * India | 1,566,636 | * Spain | 1,472,046 |  * Canada | 1,446,669 |
10 | * Spain | 1,462,894 | * India | 1,405,064 | * Brazil | 1,433,699 |
Finding happiness outside the GNP / Bhutan searching for a way to stop drift from harmony
January 23, 2006|Charles Burress, Chronicle Staff Writer
http://articles.sfgate.com/2006-01-23/news/17279481_1_bhutan-gross-national-happiness-consumer-goods
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