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Malaysia Macroeconomic

In: Business and Management

Submitted By zar903
Words 3314
Pages 14
Page

INTRODUCTION 2

Economic growth and living standards in Malaysia. 3 -7

Unemployment in Malaysia 7 - 10

Inflation in Malaysia 10 - 12

Summary 13

References 13 -14

1. Introduction
Macroeconomics can be best understood in contrast to microeconomics which considers the decisions made at the level of a specific subgroups or individuals. Macroeconomics considers the behavior of an economy at the aggregate level or how all of these decisions sum together. It looks at the bigger picture and involves the study of the economy as a whole. More specifically, it is a study of national economies and the determination of national income. The study of macroeconomics are focusing on several factors that are: * Real output – determine the reason of the economic growth and their differences between various countries. * Productivity – the average labour productivity. * Economic growth – causes of decline and growth. * Unemployment – types, reason and how to overcome it. * Inflation – Causes, reason of different rate either from time to time and from one country to another.
In order to greasing the engine of the economy, government used several policies such as: * Financial or monetary policies to influences supply of money in their economy. * Fiscal policy such as taxes and government expenditure. * Income policy to control prices and wages. * Supply-side policy which focuses on the aggregate supply and how to increase the production.
Macroeconomic are one of the mechanism to forecast economic conditions to help consumers, firms and governments make better decisions. It is important to: *

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