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22 Aggregate demand

Microeconomics is the branch of economics that deals with decision-making and other behaviour by these individual units. Another branch of economics, known as macroeconomics, deals with large groups or aggregates. Because GNP deals with the output of the country as a whole, it is macroeconomic concept.

As a first step in understanding the macroeconomic we think of the economy as being made up several different parts called sectors. These sectors represent individuals, business, government and foreign markets. The sum of expenditures of these sectors is known as Aggregate Demand.

One sector of the macroeconomics is the consumer sector. The basic unit in this sector is the household, which is made up of all persons who occupy a house, apartment, or room.

A second sector is the business, or investment sector. It is made up of proprietorships, partnerships, and corporations. It is the productive sector responsible for bringing the factors of production together to produce output.

A third sector in the macroeconomics is the government, or public sector. It includes the local, state and federal levels of government.

The foreign sector is the fourth sector of the macroeconomics. It includes all consumers and producers external in the United States.

The United States, for example, exports computers, aeroplanes, and farm products to foreign buyers. It also imports a large number of different items from foreign countries. It makes no difference whether foreign buyers are governments or private investors or if purchases are made from governments or private individuals. They all are part of the foreign sector.

Vocabulary

an advanced country – високо розвинута країна

to involve – залучати, втягувати

decision - making – прийняття рішень

decision making units – самостійна господарча одиниця, яка наділена правом приймати рішення.

aggregate demand – сукупний попит

household – домашнє господарство

It makes no difference – не існує різниці.

І. Complete the sentences using the text:

1. Microeconomics is the branch of … .

2. Macroeconomics deals with … .

3. Macroeconomic is made up of several different parts called … .

4. Aggregate demand is … .

5. One sector of the macroeconomics is … .

6. A second sector is … .

7. A third sector in the macroeconomics is … .

8. The fourth sector includes … .

II. Answer these questions, basing your answers on the text:

1. What does microeconomics deal with?

2. Macroeconomics deals with large groups or aggregates, doesn’t it?

3. Why is GNP (Gross National Product) considered as macroeconomic concept?

4. What is known as Aggregate Demand?

5. What do the sectors of the macroeconomic represent?

6. What is the basic unit in the consumer sector of the macroeconomics?

7. What is the business or investment sector made up of?

8. Is the business sector of the economy responsible for bringing the factors of production together to produce output?

9. What does the macroeconomics government or public sector include?

10. Does the foreign sector of the macroeconomics include all consumers and producers external in the United States?

11. Does it make any difference whether foreign buyers are governments or private investors?

III. Say whether these statements are true or false and if they are false, say why.

1. Microeconomics is the branch of economics that deals with decision- making making units – individuals, businesses and governments.

2. Macroeconomics deals with large groups or aggregates.

3. Macroeconomics is made up of two sectors.

4. The household is the basic unit in macroeconomics.

5. The business sector is the productive sector responsible for bringing the factors of production together to produce output.

6. Public sector includes the government.

7. The foreign sector includes all consumers and producers internal in the United States.

8. Foreign buyers should be private investors or private individuals.

Книга: Англійська для економістів - Гаращенко

ЗМІСТ

1.	Англійська для економістів - Гаращенко
2.	1. Evolution of Economic Systems, 2 Capitalism, 3 Economic factors in national development, 4 Independence of national economics, 5 Social control of modern industry
3.	2 Capitalism
4.	3 Economic factors in national development
5.	4 Independence of national economics
6.	5 Social control of modern industry
7.	6 Public revenue in Canada, 7 The national debt, 8 National income and distribution, 9 Taxes, 10 The enigma of production in the modern world
8.	7 The national debt
9.	8 National income and distribution
10.	9 Taxes
11.	10 The enigma of production in the modern world
12.	11 Market, 12 Monopolies, 13 Elasticity of supply and demand, 14 Utility, 15 Price
13.	12 Monopolies
14.	13 Elasticity of supply and demand
15.	14 Utility
16.	15 Price
17.	16 Labour and capital, 17 Money, 18 Banks, 19 Aggregate supply, 20 Aggregate supply
18.	17 Money
19.	18 Banks
20.	19 Aggregate supply
21.	20 Aggregate supply
22.	21 GNP, 22 Aggregate demand, 23 Aggregate demand, 24 Inflation, 25 Economic growth
23.	22 Aggregate demand
24.	23 Aggregate demand
25.	24 Inflation
26.	25 Economic growth
27.	26 Economic growth, 27 Economic growth, 28 Unemployment, 29 Unemployment, 30 Unemployed and employed
28.	27 Economic growth
29.	28 Unemployment
30.	29 Unemployment
31.	30 Unemployed and employed

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