Macro paper Essay Example | Topics and Well Written Essays - 2000 words

Macro paper - Essay ExampleI chose the chapter or so economic branch (chapter 16) because I believe that it would be most useful to use that topic at this time since the global economy has been experiencing a downturn in the past months. In chapter 16, the different indicators of growth are discussed as well as different ways to illustrate growth. I find these aspects enkindle since there are, indeed, a lot of ways to show economic growth. For example, the use of a Production possible action curve to measure growth is a common tool. This chapter says that in order for growth to occur, the curve should practise an outward shift. But I think it cannot be applied to all countries. Maybe it is applicable to substantial countries because it is easy for them to shift to a higher Production Possibilities Frontier (PPF). In developing countries, however, economic growth means moving from inside the PPF to reach the point along the PPF (Crafts 139). Also, growth forget not perpetuall y occur just as long as the PPF curve shifts outward. According to the Solow Growth model, growth pull up stakes start to slow down as the economy feeleres its steady land level (Crafts 140). Just wish in microeconomics where there is the law of change magnitude marginal utility. Although Solow did not mention most a diminishing economic growth, the steady state level of an economy is like the satiation point wherein growth will slow down.Also, this topic brought the study of macroeconomics to a new level since it does not only talk about the usual AS-AD curves in macroeconomics but it also tackles the society part of economics. Yes, it discusses about the Aggregate demand and lend and the Production Possibility curve but it enables us to understand the global economy in a broader perspective.The Battle of Ideas A Macroeconomic PerspectiveIn the first episode of Commanding Heights, The Battle of Ideas, the contrasts amid Keynesian economics and Austrian economics are very no ticeable. From Lenins revolution against the global economy to Von Mises fire market. During the World War I, Lenin was against the free market and even said that globalization exploits men. Communism took over Russia. The state had implemented dangerous public intervention. When John Stalin came, the idea of central planning was introduced. The government had so more power over wages and prices. This was the main idea of Keynesian economy. Public intervention is needed in order for an economy to develop or attain growth. On the other hand, theres this Austrian economics that constitutes the laissez faire approach to the economy - that free market is essential to attain a good economy. But what is really set aside in order for an economy to grow Is it the Keynesian or AustrianIn the world immediately that globalization is so prevalent, is it really beneficial for a country to apply the Keynesian thought of solemn public intervention Well, lessons from the past may have the ans wers to that. In the Battle of Ideas, when Lenin decided to impose heavy public intervention, the Soviet Union did not really prosper at all. Although communism was rampant in their time, having the government