PENGANTAR ILMU EKONOMI MAKRO

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PENGANTAR ILMU EKONOMI MAKRO

• CHAPTER 2
• MARKET AND GOVERNMENT IN A MODERN ECONOMY
• (Pasar dan Peranan Pemerintah dalam Perekonomian)

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INTRODUCTION

• Pada tahun 1900an muncul doktrin Laissez-faire,
  artinya leave us alone (biarkan aku sendiri),
  atauhold that government interfere as little as
  possible in economic. Ini adalah doktrin
  kebebasan ekonomi (sistem ekonomi pasar)
• Sistem ekonomi pasar melahirkan kegagalan pasar
  (market failure), seperti inefficiency,
  inequality, macroeconomic problem, etc)
• Karena terjadi kegagalan pasar, maka setelah
  tahun 1900an muncul welfare state, yaitu sebuah
  doktrin yang menghendaki perlunya campur tangan
  pemerintah dalam perekonomian. Misalnya pajak,
  subsidi, JPS, pensiun, dst

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2.1. PASAR DAN PEREKONOMIAN
Mekanisme pasar adalah bentuk organisasi ekonomi
di mana pembeli dan penjual bertemu dan
berinteraksi melalui pasar untuk memecahkan tiga
masalah ekonomi yang mendaar

• Pasar (market) market is a mechanism through
  which buyers and sellers interact to set prices
  and exchange goods and services
• Market Equilibrium
• QD QS, menghasilkan harga dan jumlah
  keseimbangan
• Jenis-jenis pasar (bisa dilihat dari beberapa
  sisi, misalnya derajat persaingan, jenis barang,
  dst)
• Pasar dapat menyelesaikan 3 masalah ekonomi
  What, how, and for whom
• Penentuan harga dalam sistem ekonomi pasar (lihat
  bagan berikut)

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Price on factor markets (wages, rents, interest)
Supply of factors Labour, land, capital
Demand for factors
What
CONSUMERS
BUSINESSES (firms)
How
For whom
Price on product markets
Supply of goods
Demand for goods
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2.2. TRADE, MONEY, AND CAPITAL

• Trade (Perdagangan)
• Kenapa ada perdagangan untuk apa apa manfaat
  perdagngan (gain from trade, specialization and
  division of labor)
• Money Lubricant of exchange
• What is money?
• Fungsi uang
• 1. The means of exchange/ a medium of exchange
• 2. Unit of account
• 3. Store of value (wealth)
• 4. Standard of defered payment
• Capital
• Jenis-jenis modal bangunan, mesin dsb
• Capital formation
• Human capital
• Fungsi modal
• Perbedaan modal dengan investasi

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2.3. THE ECONOMIC ROLE OF GOVERNMENT

• To increase efficiency
• Sistem ekonomi pasar pada pelaksanaannya
  mengalami kegagalan (market failure) oleh karena
  itu pemerintah perlu campur tangan dalam
  perekonomian
• To promote equity
• Pasar tidak selalu melakukan distribusi
  sumberdaya secara adil, maka perlu campur tangan
  pemerintah. Bentuk campur tangan misalnya dalam
  penarikan pajak, subsidi
• To foster macroeconomic growth and stability
• Growth sumber pertumbuhan, LPE, pertumbuhan dan
  kualitas pembangunan, kebijakan fiskal dan
  moneter
• Stability of economic indikator stabilitas,
  kebijakan pemerintah untuk stabilitas ekonomi,
  dst.

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Government Can Remedy The Shortcoming of The
Market
Market Failure Government Intervention Examples of Govt Policy
Inefficiency monopoly externalitas public goods Encourge competition Intervene in markets Encourge beneficial activities Antitrust laws, deregulation, Antipolution laws, ect. Build ligthouse, public ed.
2. Inequality (ketidakmerataan) Redistribution income Progressive tax, transfer programs
3. Macroeconomic Problems high inflation and employment slow of economic growth Macroeconomic policies Stimulate growth Fiscal Monetary policy Investment in education Raise national saving
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CHAPTER 20

• OBJECTIVES AND INSTRUMENT OF MACROECONOMIC (THE
  GOALS OF MACROECONOMIC POLICIES)

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INTRODUCTION

• The birth of macroeconomics (ME)
• Founded by John Maynard Keynes 1930an
• Central ME questions
• (a). Why do output and employment sometimes
  fall, and how can employment be reduced
• (b) What are the sources of inflation , and how
  can it be keft under control and
• (3) How can a nation increase its rate of
  economic growth

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OBJECTIVES AND INSTRUMENTS OF MACROECONOMIC
No. Objectives of MEP Instruments/Tools
1 Output rapid growth of output Monetary policy
2 Employment Fiscal policy
3 Price level stability Monetary policy
4 Exchange rates stability Monetary policy
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INTERNATIONAL LINKAGES

• 1. All nation participate in the world economy
  trade and finance (export and import)
• 2. Trade policies tariffs, quotas, etc
• 3. International financial management (foreign
  exchange rates)
• 4. Exchange rates represents the price of its own
  currency in terms of the currencies of other
  nations

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AGGREGATE SUPPLY AND DEMAND(AS AND AD)

• AS refers to the total amount/quantity of goods
  and services that the nations business willingly
  produce and sell in given period
• AS f(Price, Level, Prod Capacity of the ec,
  costs level)
• AS dan P memiliki hubungan positif
• AD refers to the total amount that different
  sector in economy willingly spend in given period
  (sektor perekonomian consumers, business,
  government, foreigners),
• AD f(Price level, Monetary Policy, Fiscal
  Policy, etc)
• AD dan P memiliki hubungan negatif

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3. Macroeconomic Equilibrium
P
Equilibrium consequences -. Terjadi output dan
harga keseimbangan -. Terdapat employment -.
Terjadi international trade
AS
B
C
P1
E
PE
AD
Q
QC
QE
QB
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3. The causes of Shifting in AD
P
The causes of shipfting in AD Increase aggregate
spending Exp increase in military spending, etc
AS
F
PF
E
AD1
PE
AD
Q
QF
QE
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4. The causes of shipting in AS
AS1
P
The causes shifting in AS. The cost of
production increase Increase of the world price
of crude oil, rate of electricity, etc. The
consequences of it is decline of output,
employment, inflation, etc. it lead to
determination of macroeconomic goals
AS
G
PG
E
PE
AD
Q
QE
QG
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5. Long-run Economic Performance
P
The causes of price increase in the long run
(P1900-P2000)
AS
P-2000
AD
AS
P-1900
AD
Q
Q-2000
Q-1900
20 T
2 T
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CHAPTER 21

• MEASURING ECONOMIC ACTIVITY
  (NATIONAL PRODUCT/INCOME)

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1. GROSS DOMESTIC PRODUCT (GDP)

• Definitionit is the sum of the dollar values of
  consumption ( C ), gross investment ( I ),
  government purchases of goo and services ( G ),
  and net export (X-M) produced within a nation
  during a given year (Samuelson), 2002434).
• GDP C I G (X-M)
• The purpose of measuring GDP is to measure the
  overall performance of an economy

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2. THE METHOD OF MEASURING GDP

• Production Approach (value added approach)
• value added is the different between a firmsales
  and its purchases of materials (cost of
  intermediate product) from after firms.

State of Production Sales Receipts ( 1 ) Cost of inter-Production ( 2 ) Value added (Wages, Profit, ets) (3) (1-2)
Wheat 23 0 23
Flour 53 23 30
Baked dough 110 53 57
Final product (Bread) 190 110 80
Total 190
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• b. Expenditure approach, and ( C ) Earning/cost
  approach

Expenditure Approach Earning Approach
Components of GDP Earning or costs as soyrces of GDP
Consumption ( C ) Gross Private Domestic Investment ( I ) Government Purchases ( G ) Net Export (X-M) Wages, salaries, other labor Income Interest, rent, other property Income Indirect taxes Depreciation Profits
Equals Gross Dom Product Equals Gross Dom Product
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3. THE PROBLEM OF DOUBLE COUNTING

• We defined GDP as the total production of final
  goods and services. A final product (goods) is
  one that is produced and sold for consumption or
  investment. GDP excludes intermediate goods (i.e.
  goods that are used up to produced other goods).
  GDP therefore includes bread but not wheat, and
  home computers but not computer chips.
• If bread and wheat sumed in the economic
  activity, the double counting is happened.

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4. DETAILS OF THE NATIONAL ACCOUNTS

• Nominal GDP (GDP at market prices/current prices)
• Real GDP (GDP at constant prices)
• is multiplying the quantities of goods by fixed
  set of prices, or
  Q real GDP Nominal GDP divided
  by GDP deflator PQ/P
• GDP deflator (Nominal GDP/real GDP) general
  prices
• index number of prices
• The kinds of price indexes
• - Consumers price index (CPI), atau IHK
• - Producers price index (PPI or IHP) is the
  price index of goods sold at the wholesale level
  (such as steel, wheat, oil, ect) (Samuelson,
  2002774)
• - GDP deflator

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5. COMPONENT OF GDP

• Consumption ( C )
• durable goods automobiles, motorcycles, etc
• nondurable goods food, drink, etc
• services (medical care, bank, etc
• 2. Investment and capital formation ( I )
• physical investment (additional capital stock)
• financial investment (using money to buy stock,
  or to open saving account
• 3. Government expenditure ( G )
• payroll expenditures on its employees
• gross investment/public goods
• office equipment, etc. (excluded transfer
  payment
• 4. Net exports ( X-M) it is measurement of inter
  linkages

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6. FROM GDP TO DISPOSIBLE INCOME (DI)

• GDP C I G (X M)
• NI National Income
• GDP (Depreciation Indirect Taxes)
• DI Disposible Income
• NI (Direct Taxes Net Business Saving)
  Tr
• Or
• NI w r i p
• GDP NI Depreciation Indirect Taxes
• Notes w wages, r rent, i interest, p
  profit
• See diagram below

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Net Export
Depreciation
Government Expenditure
Indirect Taxes
National Income
Direct Taxes
Investment
Transfer payment
Net business saving
Consumption
DI
GDP
National Income ( NI )
Disposible Income ( DI )
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7. BEYOND THE NATIONAL ACCOUNT

1. Omitted non market activities meals, loundering,
   child care services, ect
2. Omitted environment demages
3. Calculation is normally in averages, ect

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