Macroeconomics Models Essay 2022

ECONOMICS

Contents
Introduction................................................................................................................................3
Macroeconomic models.............................................................................................................3
Conclusion..................................................................................................................................9
References................................................................................................................................10

Topic 2
With the assistance of economic models and statistical data, identify and explain the
fundamental sources of the steady increase in GDP per capita in most developed and
developing countries around the world since the Second World War.
Introduction
The essay brings out a discussion on macroeconomics, which will show the impact on
national economics. The economic models will measure these balances and economic
circumstances. Main source of increasing GDP per capita is directly related to the concept of
aggregate demand and aggregate supply. Other more indicators will include GDP (domestic
income), national income (NNP), total employment contribution. The essay will further show
dynamic changes occurred in the world economy after Second World War. It is often said
that the era of World War is the greatest era, in which economic expansion has showed its
golden times in both developing as well as developed country.
US has experienced high economic growth, which will be differently shown as the collective
impact on economic models. Current policy makers have been offering greater scope to
address systemic issue, which will continuously hamper the progress of sustainable goals for
the economy (Russo, Riccetti, & Gallegati, 2016). Macro economies indicates the reflection
of high aggregate demand to high aggregate supply. In context to Indian economy, which is a
developing economy, it is seen that every model is either positively or negatively
proportional GDP rate (Bohanon, 2012).
Macroeconomic models
Economic models describes demand of goods, supply of goods, national income generated,
total employment, and GDP growth (Leduc, & Liu, 2016).

(Source: Pettinger, 2017)
Aggregate demand means submission of total demand of all goods and services in economy.
It is add up of consumption and investment. It also define as total goods exchange for money
at particular price level and point of time. We can say Aggregate demand is equal to GDP of
the economy when price level adjusted in the end. It includes overall demand i.e. capital
goods, consumer goods, household goods, government investment expenditure, government
consumption expenditure, imports, exports. Aggregate demand curve slopes upward from left
to right (Pettinger, 2017).