The Fallacy of Western Economics西方经济学谬论

西方经济学英文Introduction:Western Economics is among the most important branches of economics that have contributed to the growth and development of the global economy. It is the study of how societies use resources to produce goods and services for consumption. The primary focus of Western economics is on the behavior of individuals, businesses, governments, and other organizations and how they interact with each other to create and manage economic systems. In this document, we will explore the history and evolution of Western economics, its fundamental principles and theories, as well as its impact on modern society.History and evolution of western economics:The history of Western economics dates back to ancient Greece, where prominent philosophers like Aristotle studied economic principles related to trade, money, and political systems. However, it was not until the 18th century when Westerneconomics started to emerge as a distinct area of study with the publication of "Wealth of Nations," by Adam Smith. This seminal work focused on the concept of “invisible hand” which argued that, when individuals pursue their self-interest through trade, free markets could, in theory, be self-regulating and result in economic growth, increased productivity and wealth creation.Over time, Western economics continued to evolve, and significant contributions came from notable economists such as David Ricardo, Thomas Malthus, and John Stuart Mill. According to the labor theory of value developed by David Ricardo, prices of goods and services are determined by the amount of labor required to produce them. Malthus's theory of population argued that, while population growth will outstrip food production leading to hunger and poverty in the long run, Mill'sclassical theory of economics focused on the interplay of supply and demand.Modern Western economics and its principles and theories:In the late 19th century, Western economics started incorporating rigorous empirical methods of study and adopted mathematical tools for analyzing economic phenomena. Economists like Alfred Marshall took an interdisciplinary approach that incorporated psychology and other social sciences to better understand human behavior.Currently, Western economics covers a wide range of topics, including microeconomics and macroeconomics, international trade and finance, public finance, economic development, and game theory, among others. Theories such as the theory of comparative advantage, the Keynesian economics, the monetarist theory of inflation, and the concept of the Phillips curve have been essential in shaping decisions on economic policies around the world. Also, game theory, which was developed by John Nash and others, has been instrumental in providing insights into how people interact, providing a basis for strategic decision-making.Impact of Western economics on modern society:Western economics has had a profound impact on modern society, shaping the way people think about and approach economic issues. It has facilitated economic growth and helped in reducing poverty as well as promoting international cooperation and integration through trade. It has been critical to the formation of economic policies, shaping tax structures, labor relations, and contributing to the growth of different industries.Moreover, Western economics has had broader implications, such as providing a framework for analyzing the relationship between economic growth and environmental sustainability. It has also contributed to the development of the welfare state, where governments intervene in the economy to provide social services such as healthcare, education, and welfare programs.Conclusion:Western economics has been integral in shaping our understanding of how markets work and how resources are allocated in society. Its contributions to economic thought have beensubstantial, and its influence continues to shape the modern world. By providing policymakers with critical insights on economic phenomena and offering practical solutions, Western economics remains an essential tool in shaping and driving economic development and progress.。

To Spend or to Save? Trick QuestionIt’s your fault. Part of it is, anyway. You, the American consumer,spent too much money. You bought too much house, took on too much debt and generally lived beyond your means. Yourfree-spending ways helped cause the worst financial crisis since theGreat Depression.And now you’re going to have to do your part to end the crisis. How? By spending. Enough already with the saving that many of you have suddenly begun doing. This very moment, Congress and President Obama are preparing to send you a tax rebate, to inspire you to stimulate the economy. So go out and stimulate. Spend as if the future of your country depended on it.John Maynard Keynes, the great 20th-century economist, would have appreciated the apparent absurdity in these mixed messages. He coined a phrase, “the paradox of thrift,” to point out that what was rational for an individual during hard times — saving money —could be ruinous for an entire economy. Eventually, many of the savers may end up out of work because everyone else is saving, too. It’s enough to make you wonder what exactly you’re supposed to do. At his news conference on Monday night, Mr. Obama was asked directly whether people should spend or save their rebate checks. He ducked the question.Fortunately, though, it has an answer. There are a few ways to helpboth your own finances and the country’s.The first involves figuring out how to spend money now to savemoney later — which can lift the economy today and helpindividual households cope with their battered finances in the long run. The second involves realizing that Keynes’s paradox isn’t ironclad. In a financial crisis, when banks may need capital as much as retailers or restaurants need business, many people can save without guilt.What follows is a guide to spending and saving, both sensibly andpatriotically.Besides developing the most famous prescription for curing downturns, Keynes can also be considered the godfather ofbehavioral economics, as the columnist David Ignatius recently wrote. While other economists obsessed over statistical models that treated people as hyperrational automatons, Keynes wrote about “animal spirits.” He helped explain how psychology shaped economics.Psychology-tinged economics — that is, behavioral economics —has taken off over the last two decades, and one of its central findings is that most people do not do a good job of planning for the future. They aren’t nearly as nice to their “future self,” as economists say, as to their “present self.”They eat just one more doughnut and put off exercising until tomorrow and tomorrow and tomorrow. They fail to set aside enough for retirement. Again and again, they choose a bird in the hand — be it dessert, convenience or a little extra cash — over three or four in the bush.These habits end up causing a lot of trouble. But they also present an opportunity in a time like this. Most people could save themselves a good bit of money by giving proper respect to their future self. They could spend a little now and save a lot later. McKinsey & pany recently analyzed household spending on energy, for example, and found enormous waste. People heat their homes when they are not there and, thanks to leaks in their walls and heating ducts, also heat the airspace above their roof.A programmable thermostat, which adjusts the temperature when people are out of the house or asleep, can cost as little as $50. For less than $1,000, people can buy the thermostat, as well as hire a contractor to fix leaks and replace their light bulbs with more efficient ones. In either case, the spending often pays for itself in just a year or two.“There is a difference between consuming and investing,” says Ken Ostrowski of McKinsey. “And energy efficiency falls more into the category of inves ting.”I asked behavioral economists for some other examples, and they helped me e up with a nice little list. Parents of young children can join Costco and make up their membership fee with just a few months of diaper purchases. Drivers can inflate their tires, change their air and fuel filters and start getting better mileage. Frequentbook buyers who don’t mind screen reading can buy the new Kindle. It costs $359, but most new books then cost less than $10. Families who shop at rent-to-own stores, which charge ridiculous interest rates, can temporarily pare back and then buy furniture or electronics outright.People who do a lot of laser printing can purchase a printer that uses only a cent or two of ink per page. (Many use far, far more.) Purified water drinkers can lay off the Aquafina and buy a water filter. Seltzer drinkers can buy a seltzer maker. My wife and I now have one, and it is a beautiful thing indeed.In these cases — and, no doubt, many others — the initial investment tends to pay off quickly, sometimes in mere months. That’s why such spending is perfectly suited to the moment. It will keep people employed or create new jobs when the economy needs the help. But it will also shore up households’ finances.The one big caveat is that some p eople will feel that they can’t afford to lay out an extra $50 or $100 right now. Millions of workers have already lost their jobs, and many others simply want to cut back. In December, households saved an average of 3.6 percent of their disposable ine, up from about 1 percent in recent years.In a normal recession, this new saving would have a lot more downside than upside, just as Keynes explained. But this recession is different. It has been caused by a financial crisis. If Americans don’t get their fina nces in better shape — if mortgage defaults keep rising and credit card delinquencies soar — banks will remain afraid to lend, and the recession will linger.Even more immediately, banks need to get their own finances in order. That’s the whole aim of the new bailout plan announced by the Treasury Department on Tuesday. Some additional personal savings can only help that effort.“The government is pouring hundreds of billion of dollars into banks,” said Richard Thaler, a University of Chicago economist. “What’s so bad about households pouring some money into banks?”The ideas here don’t apply only to individuals, either. They apply to the stimulus package as well. The federal government is set to spend $800 billion to stimulate the economy. Much of that money will necessarily go to tax rebates, unemployment benefits and other programs without much long-term benefit. But $800 billion is a lot of money. And the best forms of stimulus are the ones that take effect quickly and bring a long-term payoff. That can mean tax credits for home weatherization or money to pay for the installation of puterized medical records — two programs that are still in the stimulus bill.Whenever this recession finally ends, our future selves are going to be facing some very big bills. They can use all the help we can give them.花钱还是存钱？难解的问题。

[考研类试卷]西方经济学（经济学基础知识）模拟试卷11 著名的芝加哥保守经济学家乔治.斯蒂格勒(George Stigler)写道：“没有哪个彻底平均主义的社会能够构造或维持一个有效而富有进取的经济体系。

应用奖励级别刺激劳工已经成为各国普遍的经验。

”(《价格理论》第3版，The Theory of Price，Macmillan，NewYork，1966，P．19．)这一论述是属于实证经济学，还是属于规范经济学?参考第1题中马歇尔的话。

讨论斯蒂格勒的这个观点，二者是否存在矛盾?2 伟大的英国经济学家阿尔弗雷德.马歇尔(Alfred Mar shall)(1842-1924)发明了许多现代经济学工具，但他最关心的是这些工具在社会问题上的应用。

马歇尔在他的就职演说中写道：“我最大的抱负就是帮助剑桥大学为世界各地培养更多冷静而热情的人才，他们愿意把自己最充沛的精力贡献给社会，设法解决身边的社会困苦；直到了解高雅而高尚的生活的全部实质内容，他们才会满足。

”试解释如何以冷静的头脑进行实证分析，进而将热情的心所进行的规范的价值判断付诸实施。

你同意马歇尔关于教师职能的观点吗?你愿意接受他的挑战吗?3 仔细给下列术语下定义。

并给出例子：投入、产出。

4 有些科学家认为。

我们正在加速耗尽我们的自然资源。

现假定，社会一直没有任何技术进步，只有两种投入(劳动和自然资源)。

生产两种物品(音乐会和汽油)。

随着自然资源日益枯竭。

该社会的生产可能性边界会发生何种变化?发明和技术进步将会怎样改变你的答案?进而。

请解释为什么说“经济增长是资源耗费与技术进步之间的一场竞赛”。

5 考虑关于清洁空气和汽车运输的生产可能性边界。

(1)解释为什么未被管制的汽车尾气污染会使国民经济处在生产可能性之内。

认真画出两种物品的生产可能性边界来说明你的讨论。

(2)接着解释如何为有害的汽车排放物定价以同时增加两种商品的数量，并将国民经济所处的位置移动到生产可能性曲线之上。

811西方经济学参考书目在西方经济学领域，有许多经典的参考书籍，涉及了各个方面的经济学理论和实践。

这些书籍为学习者提供了深入了解西方经济学的基础知识和思维框架的机会。

下面是一些811西方经济学参考书目，这些书籍涵盖了宏观经济学、微观经济学、发展经济学以及国际贸易等领域。

1.《宏观经济学原理》（Mankiw’s Principles of Macroeconomics）作者：N. Gregory Mankiw 这本书是宏观经济学领域的经典教材，被广泛采用于大学宏观经济学课程。

它以清晰简洁的方式介绍了宏观经济学的核心原理，包括经济增长、通货膨胀、货币政策和财政政策等。

2.《劳动经济学》（Labor Economics）作者：Pierre Cahuc, StéphaneCarcillo, and André Zylberberg 这本书提供了关于劳动经济学的系统性、全面性的介绍。

它涵盖了劳动力市场的理论和实践问题，包括工资决定、失业、劳动力市场政策和劳动力市场的不平等等。

3.《发展经济学》（Development Economics）作者：Debraj Ray 这本书介绍了发展经济学的基本概念、理论和实践。

它探讨了经济发展的驱动力、经济不平等以及发展政策等重要主题。

4.《国际经济学》（International Economics）作者：Paul Krugmanand Maurice Obstfeld 这本书是国际经济学领域的经典教材，旨在帮助读者理解国际经济关系的核心概念和原则。

它涵盖了国际贸易、国际金融和国际货币体系等方面的理论和实践问题。

5.《货币银行学》（Money, Banking, and Financial Markets）作者：Frederic S. Mishkin 这本书是一本经典的货币银行学教材，对货币和金融市场的运作以及中央银行的角色进行了深入的讨论。

它介绍了货币供需、利率、银行业务和金融市场等关键概念。

Ladies and gentlemen,Good morning/afternoon/evening. It is a great honor to stand before you today to discuss the fascinating world of Western economics. Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different individuals. Over the centuries, economic thought has evolved significantly, and Western economics, in particular, has played a pivotal role in shaping our understanding of modern economic phenomena. In this speech, I will explore the core principles of Western economics, highlighting the foundational theories that have guided economic policies and practices worldwide.Introduction: The Significance of Western EconomicsWestern economics is a comprehensive discipline that encompasses a wide range of theories, models, and concepts. It has been instrumental in advancing our understanding of market dynamics, economic growth, and policy-making. By examining the principles of Western economics, we can gain insights into how economies function, how individuals make decisions, and how governments can intervene to promote prosperity.The Pillars of Western Economics1. The Concept of ScarcityThe first and foremost principle of Western economics is the concept of scarcity. Scarcity refers to the limited availability of resources in relation to human wants. This fundamental economic problem necessitates the allocation of resources in the most efficient manner possible. As a result, economists emphasize the importance of making rational choices based on the opportunity cost of each alternative.2. The Role of Supply and DemandSupply and demand are the two primary forces that determine the price and quantity of goods and services in a market economy. The law of supply states that, ceteris paribus, as the price of a good increases, the quantity supplied by producers also increases. Conversely, the lawof demand suggests that, ceteris paribus, as the price of a good decreases, the quantity demanded by consumers also decreases. Understanding the interplay between supply and demand is crucial for predicting market outcomes and formulating effective economic policies.3. The Nature of MarketsWestern economics analyzes various types of markets, including perfect competition, monopolistic competition, oligopoly, and monopoly. Each market structure has unique characteristics that affect the behavior of firms and consumers. For instance, in a perfectly competitive market, there are many buyers and sellers, homogeneous products, and free entry and exit, leading to efficient allocation of resources. On the other hand, a monopoly market has a single seller with significant market power, potentially leading to inefficiencies and higher prices.4. The Concept of Opportunity CostOpportunity cost is the value of the next best alternative that is forgone when making a choice. It serves as a guiding principle for individuals, firms, and governments in making rational decisions. By considering the opportunity cost of their actions, economic agents can ensure that they are utilizing their resources in the most productive manner.5. The Role of Government in the EconomyWestern economics acknowledges that markets are not always perfect and that government intervention can be necessary to achieve social welfare. Governments can intervene through fiscal and monetary policies, regulation, and public investment to correct market failures, such as externalities, monopolies, and public goods.6. Key Economic IndicatorsEconomic indicators, such as GDP, unemployment rate, inflation, and interest rates, provide insights into the overall health of an economy. By analyzing these indicators, policymakers and economists can make informed decisions regarding economic stability and growth.Conclusion: The Legacy of Western EconomicsIn conclusion, Western economics has provided us with a robust framework for understanding and analyzing economic phenomena. The foundational theories and principles of Western economics have guided policymakers and businesses in shaping economic policies and practices worldwide. By emphasizing the importance of scarcity, supply and demand, market structures, opportunity cost, government intervention, and economic indicators, Western economics has become an indispensable tool for promoting prosperity and well-being.Ladies and gentlemen, as we continue to navigate the complexities of the global economy, it is crucial that we remain grounded in the principles of Western economics. By doing so, we can ensure that our decisions are informed, rational, and aimed at fostering a more prosperous and equitable society.Thank you for your attention, and I welcome any questions you may have.。

西方经济学名词解释英文版第一章Macroeconomics 宏观经济学The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. 研究国民收入的各方面。

Microeconomics 微观经济学The study of the operations of the components of a national economy, such as individual firms, households, and consumers.研究经济中单个因素行为的分析。

GDP 国内生产总值 (Gross Domestic Product)The total market value of all final goods and services producedwithin the borders of a nation during a specified period.一国国民在各行业中一年内生产的最终产品和最终服务价值总和。

It isoften seen as an indicator of the standard of living ina country.Gross Domestic Product,consumption + investment goods + government purchases + net exportsEconomic Growth 经济增长steady growth in the productive capacity of the economy (and so a growth of national income)Real Economic Growth Rate 实际经济增长率A measure of economic growth from one period to another expressed as a percentage and adjusted for inflation (i.e. expressed inreal as opposed to nominal terms). The real economic growth rate isa measure of the rate of change that a nation's gross domestic product (GDP) experiences from one year to another. Gross national product (GNP) can also be used if a nation's economy is heavily dependent on foreign earnings. The real economic growth rate builds onto the economic growth rate by taking into account the effect that inflation has on the economy. The real economic growth rate is a "constant dollar" and therefore a more accurate look at the rate of economic growth because the real rate is not distorted by the effects of extreme inflation or deflation.GDP deflator GDP指数In economics the GDP deflator (implicit price deflator for GDP) is a measure of the change in prices of all new, domestically produced, final goods and services in an economy. GDP stands for gross domestic product the total value of all goods and services produced within that economy during a specified period.Nominal GDP 名义GDPA gross domestic product (GDP) figure that has not been adjusted for inflation.Real GDP 实际GDPThis inflation-adjusted measure that reflects the value of all goods and services produced in a given year, expressed in base-year prices. Often referred to as "constant-price", "inflation-corrected" GDP or "constant dollar GDP". Unlike nominal GDP, real GDP can accountfor changes in the price level, and provide a more accurate figure.Potential output 潜在产量/潜在GDPIn economics, potential output (also refered to as "natural real gross domestic product") refers to the highest level of real Gross Domestic Product output that can be sustained over the long term.GDP Gap GDP缺口The forfeited output of an country's economy resulting from the failure to create sufficient jobs for all those willing to work. A GDP gap denotes the amount of production that is irretrievably lost. The potential for higher production levels is wasted because therearen't enough jobs supplied.(与书异)Net Exports 净出口The value of a country's total exports minus the value of its total imports. It is used to calculate a country's aggregate expenditures, or GDP, in an open economy. In other words, net exports is the amount by which foreign spending on a home country's goods and services exceeds the home country's spending on foreign goods and services.Recession 经济衰退A significant decline in activity spread across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income, and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's GDP.Notes: Recession is a normal (albeit unpleasant) part of the business cycle. A recession generally lasts from six to eighteen months.Interest rates usually fall in recessionary times to stimulate the economy by offering cheap rates at which to borrow1money.Depression 经济萧条A severe and prolonged recession characterized by inefficient economic productivity, high unemployment, and falling price levels. In times of depression, consumer's confidence and investments decrease, causing the economy to shutdown. Value Added 附加值The enhancement a company gives its product or service beforeoffering the product to customers. This can either increase the products price or value.(与书异)Gross National Product – GNP 国民生产总值An economic statistic that includes GDP, plus any income earned by residents from overseas investments, minus income earned within the domestic economy by overseas residents. GNP is a measure of a country's economic performance, or what its citizens produced (i.e. goods and services) and whether they produced these items within its borders.Disposable Income 可支配收入The amount of after-tax income that is available to divide between spending and personal savings. This also known as your take home pay.Unemployment Rate 失业率The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.Labor force 劳动力the group of people who have a potential for being employed.Frictional Unemployment 摩擦性事业Unemployment that is always present in the economy, resulting from temporary transitions made by workers and employers or from workers and employers having inconsistent or incomplete information.Structural Unemployment 结构性失业Unemployment resulting from changes in the basic composition of the economy. These changes simultaneously open new positions for trained workers.Cyclical Unemployment 周期性失业Unemployment resulting from changes in the business cycle.Natural Unemployment 自然失业率(与书异)The lowest rate of unemployment that an economy can sustain over the long run. Keynesians believe that a government can lower the rate of unemployment (i.e. employ more people) if it were willing to accept a higher level of inflation (the idea behindthe Phillips Curve). However, critics of this say that the effect is temporary and that unemployment would bounce back up but inflation would stay high. Thus, the natural, or equilibrium, rate is the lowest level of unemployment at which inflation remainsstable. Also known as the "non-accelerating inflation rate of unemployment" (NAIRU).Notes: When the economy is said to be at full employment, it is atits natural rate of unemployment. Economists debate how the natural rate might change. For example, some economists think that increasing labor-market flexibility will reduce the natural rate. Other economists dispute the existence of a natural rate altogether!Frictional unemployment — This reflects the fact that it takes time for people to find and settle into new jobs. If 12 individuals each take one month before they start a new job, the aggregate unemployment statistics will record this as a single unemployed worker. Technological change often reduces frictional unemployment, for example: the internet made job searches cheaper and more comprehensive.Structural unemployment — This reflects a mismatch between theskills and other attributes of the labour force and those demanded by employers. If 4 workers each take six months off to re-train before they start a new job, the aggregate unemployment statistics will record this as two unemployed workers. Technological change often increases structural unemployment, for example: technological change might require workers to re-train.Natural rate of unemployment — This is the summation of frictional and structural unemployment. It is the lowest rate of unemployment that a stable economy can expect to achieve, seeing as some frictional and structural unemployment is inevitable. Economists do not agree on the natural rate, with estimates ranging from 1% to 5%, or on its meaning —some associate it with"non-accelerating inflation.The estimated rate varies from countryto country and from time to time. Demand deficient unemployment — In Keynesian economics, any level of unemployment beyond the natural rateis most likely2due to insufficient demand in the overall economy. During a recession, aggregate expenditure is deficient causing theunderutilization of inputs (including labour). Aggregate expenditure (AE) can be increased, according to Keynes, by increasing consumption spending (C), increasing investment spending (I), increasing government spending (G), or increasing the net of exports minus imports (X?M).{AE = C + I + G + (X?M)}Okun's Law 奥昆法则A relationship between an economy's GDP gap and the actual unemployment rate. The relationship is represented by a ratio of 1 to2.5. Thus, for every 1% excess of the natural unemployment rate, a 2.5% GDP gap is predicted.Inflation 通货膨胀The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.Deflation 通货紧缩 steadily falling pricesA general decline in prices, often caused by a reduction in thesupply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation,deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Hyperinflation 超级通货膨胀Extremely rapid or out of control inflation.Inflation rate 通货膨胀率In economics, the inflation rate is the rate of increase of the average price level (a measure of inflation). If one likes analogies, the size of a balloon is like the price level, while the inflation rate is how quickly it grows in size. Alternatively, the inflation rate is the rate of decrease in the purchasing power of money.Consumer Price Index (CPI) 消费价格指数The CPI, as it is called, measures the prices of consumer goods and services and is a measure of the pace of US inflation. The US Department of Labor publishes the CPI every month.Demand,pull inflation 需求拉动型通货膨胀inflation due to high demand for GDP and low unemployment, also known as Phillips Curve inflation. Cost,push inflation 成本推动型通货膨胀nowadays termed "supply shock inflation", due to an event such as a sudden increase in the price of oil. Built-in inflation - induced by adaptive expectations, often linked to the "price/wage spiral" because it involves workers tryingto keep their wages up with prices and then employers passing higher costs on to consumers as higher prices as part of a "vicious circle".Built-in inflation reflects events in the past, and so might be seen as hangover inflation. It is also known as"inertial" inflation, "inflationary momentum", and even "structural inflation".Indexing 指数化The adjustment of the weights of assets in an investment portfolio so that its performance matches that of an index. Linking movements of rates to the performance of an index.Notes:1. Indexing is a passive investment strategy. An investor can achieve the same risk and return of an index also by investing in an index fund.2. Types of rates that could be linked to the performance of an index are wage or tax rates.Phillips Curve 菲利普斯曲线An economic concept developed by A. W. Phillips stating thatinflation and unemployment have a stable and inverse relationship. The theory states that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment. The concept has been proven empirically and some government policies are directly influenced by it.第二章Aggregate Demand 总需求The total amount of goods and services demanded in the economy at a given overall price level and in a given time period. It is represented by the aggregate-demand curve, which describes the relationship between price levels and the quantity of output that firms are willing to provide. Normally there is a negative relationship between aggregate demand and the price level. Also3known as "total spending".Notes:Aggregate demand is the demand for the gross domestic product (GDP) of a country, and is represented by this formula: Aggregate Demand (AD) = C + I + G (X-M)C = Consumers' expenditures on goods and services.I = Investment spending by companies on capital goods.G = Government expenditures on publicly provided goods and services.X = Exports of goods and services.M = Imports of goods and services.Aggregate Supply 总供给The total supply of goods and services produced within an economy at a given overall price level in a given time period. It is represented by the aggregate-supply curve, which describes the relationship between price levels and the quantity of output thatfirms are willing to provide. Normally, there is a positive relationship between aggregate supply and the price level. Rising pricesare usually signals for businesses to expand production to meet a higher level of aggregate demand. Also known as "totaloutput".Notes:A shift in aggregate supply can be attributed to a number of variables. These include changes in the size and quality of labor, technological innovations, increase in wages, increase in production costs, changes in producer taxes and subsidies, and changes in inflation. In the short run, aggregate supply responds to higher demand (and prices) by bringing more inputs into the production process and increasing utilization of current inputs. In the long run, however, aggregate supply is not affected by theprice level and is driven only by improvements in productivity and efficiency.Exogenous Variable 外生变量A variable whose value is determined outside the model in which itis used.An economic variable that is related to other economic variables and determines their equilibrium levels. For example, rainfall is exogenous to the causal system constituting the process offarming and crop output. An exogenous variable by definition is one whose value is wholly causally independent from other variables in the system.Endogenous Variable 内生变量A value determined within the context of a model.An economic variable which is independent of the relationships determining the equilibrium levels, but nonetheless affects the equilibrium.Consumption 消费in economics, direct utilization of goods and services by consumers, not including the use of means of production, such as machinery and factories (see capital). Consumption can be divided into public and private sectors.Investment 投资An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be soldat a higher price. In the financial sense investments include the purchase of bonds, stocks or real estate property. Government Purchases 政府购买Expenditures made in the private sector by all levels of government, such as when a government entity contracts a construction company to build office space or pave highways. A component of Keynesian expenditures, government purchases can be used as a tool for agovernment to influence the business cycle and provide economic stimulation when it is deemed necessary. Keynesian Economics 凯恩斯经济An economic theory stating that active government intervention inthe marketplace and monetary policy is the best method of ensuring economic growth and stability. A supporter of Keynesian economics believes it is the government's job to smooth out the bumps in business cycles. Intervention would come in the form of government spending and tax breaks in order to stimulate the economy, and government spending cuts and tax hikes in good times, in order to curb inflation.Classical Economics 古典经济学4Classical Economics refers to work done by a group of economists in the 18th and 19th centuries. They developed theories about the way markets and market economies work. The study was primarily concerned with the dynamics of economic growth. It stressed economic freedom and promoted ideas such as laissez-faire and free competition. Famous economists of this thinking include Adam Smith, David Ricardo, Thomas Malthus, and John Stuart Mill.Equilibrium of AD and AS 总供给和总需求的均衡supply and demand result in an equilibrium price (the interest rate) Stagflation 滞胀A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, or inflation.第三章Fiscal Policy 财政政策Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates, and government spending, in an effort to control the economy.Government spending 政府支出consists of government purchases, including transfer payments, which can be financed by seigniorage (the creation of money for government funding), taxes, or government borrowing It is considered to be one of the major components of gross domestic product.Multiplier Effect 乘数效应The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends on the percentage of deposits that banks are required to hold on reserves. In other words, it is money used to create more money and calculated by dividing total bank deposits by the reserve requirement.The multiplier effect depends on the set reserve requirement. The higher the reserve requirement, the tighter the money supply, which results in a lower multiplier effect for every dollar deposited. The lower the reserve requirement, the larger the money supply, which means more money is being created for every dollar deposited.Crowding Out Effect 挤出效应An economic theory explaining an increase in interest rates due to rising government borrowing in the money market. Notes: Governments often borrow money (by issuing bonds) to fund additional spending. The problem occurs when government debt 'crowds out' private companies and individuals from the lending market. Increased government borrowing tends to increase market interest rates. The problem is that the government can always pay the market interest rate, but there comes a point when corporations and individuals can no longer afford to borrow.Marginal propensity to consume (MPC) 边际消费倾向refers to the increase in personal consumer spending (consumption) that occurs with an increase in disposable income (income after taxes and transfers). For example, if a household earns one extra dollar of disposable income, and the marginal propensityto consume is 0.65, then of that dollar, the family will spend 65 cents and save 35 cents.Mathematically, the marginal propensity to consume (MPC) function is expressed as the derivative of the consumption (C) function with respect to disposable income (Y).In other words, the marginal propensity to consume is measured asthe ratio of the change in consumption to the change in income, thus giving us a figure between 0 and 1. One minus the MPC equals the marginal propensity to save. Marginal propensity to save (MPS) 边际储蓄倾向refers to the increase in saving (non-purchase of current goods and services) that results from an increase in income. For example, if a family earns one extra dollar, and the marginal propensity to save is 0.35, then of that dollar, the family will spend65 cents and save 35 cents. It can also go the other way, referring to the decrease in saving that results from a decrease in income. It is crucial to Keynesian economics and is the key variable determining the value of the multiplier. Mathematically, the marginal propensity to save (MPS) function is expressed as the derivative of the savings (S)function with respect to disposable income (Y).5In other words, the marginal propensity to save is measured as the ratio of the change in saving to the change in income, thus giving us a figure between 0 and 1. It is the opposite of the marginal propensity to consume (MPC). In the example above, the marginal propensity to consume would be 0.65. In general MPS = 1 - MPC.Money Supply 货币供给 (与书异)The entire quantity of bills, coins, loans, credit, and other liquid instruments in a country's economy. Money supply is divided into three categories--M1, M2, and M3--according to the type andsize of account in which the instrument is kept. The money supply is important to economists trying to understand how policies will affect interest rates and growth. M1The category of the money supply that includes all physical moneylike coins and currency. It also includes demand deposits, which are checking accounts and NOW accounts. M1 is the narrowest idea of "money." This is used as a measurement for economists trying to quantify the amount of money in circulation.M2A category within the money supply that includes M1 in addition toall time-related deposits, savings deposits, and non-institutionalmoney-market funds. M2 is a broader classification of money than M1. Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. M3The category of the money supply that includes M2 as well as alllarge time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets. This isthe broadest measure of money it is used by economists to estimate the entire supply of money within an economy. (书没有)Fiat Money 【美】(根据政府法令发行的)不兑现纸币Money that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Most of the world's paper money is fiat money.Legal tender 合法货币;偿付债务时债主必须接受的货币is payment that cannot be refused in settlement of a debt by virtueof law.Transactions demand 交易性需求is the demand or foreign currency. It is used for purposes of business transactions and personal consumption. transactions demand is one of the determinants of demand for money (and credit).Speculative demand 投机性需求is the demand for financial assets, such as securities, money or foreign currency, or financing. It is one of the determinants of demand for money (and credit).Liquidity Preference Theory 流动性偏好理论The hypothesis that forward rates offer a premium over expectedfuture spot rates. Proponents of this theory believe that, according to the term structure of interest rates, investors are risk-averse and will demand a premium for securities with longermaturities. A premium is offered by way of greater forward rates in order to attract investors to longer-term securities. The premium received normally increases at a decreasing rate due to downward pressure from the decreasing volatility of interest rates as the term to maturity increases. Also known as "liquidity preference hypothesis."Interest Rate 利率The monthly effective rate paid (or received if you are a creditor) on borrowed money. Expressed as a percentage of the sum borrowed.Nominal Interest Rate/the money interest rate名义利率The interest rate unadjusted for inflation. Not taking into account inflation gives a less realistic number. Real Interest Rate 实际利率6The amount by which the nominal interest rate is higher than the inflation rate. The real rate of interest is approximated by taking the nominal interest rate and subtracting inflation. The real interest rate is the growth rate of purchasing power derivedfrom an investment.Intermediate targets 中间目标An intermediate target is a variable (such as the money supply) that is not directly under the control of the central bank, but that does respond fairly quickly to policy actions, is observable frequently and bears a predictable relationship to the ultimate goals of policy.Open Market Operations 公开市场业务The buying and selling of government securities in the open marketin order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growthwhile sales of securities do the opposite.Notes: Open market operations are the principal tools of monetary policy. (The discount rate and reserve requirements are also used.) The U.S. Federal Reserve's goal in using this technique is to adjust the federal funds rate--the rate at which banks borrowreserves from each other.Discount Rate 贴现率The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank. This type of borrowing from the Fed is fairly limited. Institutions will often seek other means of meeting short-term liquidity needs. The Federal funds discount rate is one of two interest rates the Fed sets, the other being the overnight lendingrate, or the Fed funds rate.Lender of Last Resort 最后的贷款者/偿付者An institution, usually a country's central bank, that offers loansto banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse. In the U.S. the Federal Reserve acts as the lender of last resort to institutions that do not have any other means of borrowing and whose failure to obtain credit would dramatically affect the economy.Notes: The lender of last resort functions both to protectindividuals who have deposited funds, and to prevent panic withdrawing from banks who have temporary limited liquidity. Commercial banksusually try not to borrow from the lender of last resort because such action indicates that the bank is experiencing financial crisis. Critics of the lender-of-last-resort methodology suspect that the safety it provides inadvertently tempts qualifying institutions to acquire morerisk than necessary -since they are more likely to perceive the potential consequences of risky actions to be less severe.Reserve Requirements 法定准备金Requirements regarding the amount of funds that banks must hold in reserve against deposits made by their customers. This money must be in the bank's vaults or at the closest Federal Reserve Bank.Notes: Set by the Fed's Board of Governors, reserve requirements are one of the three main tools of monetary policy. The other two tools are open market operations and the discount rate. Also known as required reserves.第四章Supply-side economics 供给经济学A theory of economics that reductions in tax rates will stimulate investment and in turn will benefit the entire society.Laffer Curve 拉弗尔曲线Invented by Arthur Laffer, this curve shows the relationship between tax rates and tax revenue collected by governments. The chart below shows the Laffer Curve:7The curve suggests that, as taxes increase from low levels, tax revenue collected by the government also increases. It also shows that tax rates increasing after a certain point (T*) would cause people not to work as hard or not at all, thereby reducing tax revenue. Eventually, if tax rates reached 100% (the far right of the curve), then all people would choose not to work because everything they earned would go to the government.Notes: Governments would like to be at point T*, because it is the point at which the government collects maximum amount of tax revenue while people continue to work hard.Tax revenue税收is the income that is gained by governments because of taxation of the peopleBudget deficit 联邦预算赤字The amount by which government spending exceeds government revenues.Unemployment benefits 失业救济are sums of money given to the unemployed by the government or a compulsory para-governmental insurance system. Depending on the。