Principles of Macroeconomics: Introduction II

The National Income Accounts

Production Side
Consumption
+ Investment
+ Government Purchases of Goods & Services
+ Net Exports
= Gross Domestic Product (GDP)
+ Income earned abroad by citizen
- Earnings of foreign residents & firms
= Gross National Product (GNP)
- Depreciation
= Net National Product
- Indirect Taxes & Other
= National Income

Income Side
Compensation of Employees
+ Corporate profits
+ Proprietors' Income
+ Rental income of persons
+ Net Interest
= National Income
- Corporate profits tax payments, undistributed profits, valuation adjustment
- Contribution to Social Security
+ Transfer payments
+ Personal interest income
= Personal Income
- Personal taxes
= Personal Disposable Income (PDI)
- Personal consumption expenditure
- Interest paid to business
- Net personal transfer payments to foreigners
= Personal saving

"Now what I want is, Facts...

"Now what I want is, Facts. Teach these boys and girls nothing but Facts. Facts alone are wanted in life. Plant nothing else, and root out everything else. You can only form the minds of reasoning animals upon Facts; nothing else will ever be of any service to them... Stick to the Facts, sir!"

Mr. Thomas Gradgrind, Coketown...

Charles Dickens, Hard Times (New York: Norton, 1996), p. 1.

On Delaying The Marriage Of A Young Woman & Man Until Completion Of School

Question:
There is a widespread custom of a young woman or her father refusing
those who propose to her until she has completed her high school or
university education, or so that she may study for a number of years.
What is the ruling on that? And what is your advice to those who do
so, so that the young women might reach the age of thirty or more
without marrying?

Answer: My advice to all young men and women is to marry without delay and to
hasten to it, if conditions permit, as the Prophet sallallaahu 'alayhi wasallam said:

`O you young men! Those among you who have the means and the ability
should marry, because it restrains the eyes (from evil glances) and
preserves the private parts (from immorality). And whoever is unable
to do so, should fast because it is a protection for him.'
(Al-Bukhari no. 5066 and Muslim no. 1400)

And he sallallaahu 'alayhi wasallam said:

`If one whose religion and character pleases you proposes to you, then
marry (your daughter to) him. If you do not do so, it will be a cause
of trial in the land and great corruption.'
(At-Tirmithi no. 1084)

Narrated by At-Tirmithi with a Hasan chain of narrators.

And he sallallaahu 'alayhi wasallam said:

`Marry productive, loving women, because I will have the largest
number of followers on the Day of Resurrection. '
(Abu Dawud no. 2050, An-Nasa'i no. 3229, Ahmad 3/158, 245 & Ibn Hibban no. 4028)

Narrated by Imaam Ahmad and authenticated by Ibn Hibban.

It is also necessary due to the many benefits indicated by the Prophet
sallallaahu 'alayhi wasallam, such as averting one's gaze, protecting
the private parts (from sin), increasing the size of the Muslim
community, and safety from great corruption and evil consequences. May
Allaah grant all of the Muslims success in attaining that wherein lies
righteousness in the matter of their religion and their earthly life.
Verily, He is All-Hearing, Near.

Shaykh `Abdul-`Azeez Bin Baz
Fatawa Islamiyyah, Darussalam, volume 5, pages 174/175

Macroeconomics War 1970s-1990s

As the interest in macroeconomics atracted more economists, many became unsatisfied with explanation of economic events and remedial policy prescribed by the established macroeconomic theory...

Pre-1930s
Classical Economics

1930s-1970s
Keynesian Economics

Challengers of Keynesian:
Monetarism
New Classical Economics

Counter-Challengers:
Real Business Cycle Theory (strong root in Classical)
New Keynesian Theory (strong root in Keynesian)

Check how each group proposed their own explanations on economic events from 1970s to the 1990s, abd remedial prescriptions.

Principles of Macroeconomics: Introduction I

Macroeconomics: The study of "ordinary business of life" in aggregate. In other words, the behavior of the economy is analyzed as a whole.


Key Variables: Total Output (GDP), Aggregate Price Level, Employment and Unemployment, Interest Rates, Wage Rates, Foreign Exchange Rates.

Subject Matter: Factors that affect these variables; static level and changes over time.

Note: Macroeconomics focus on policy-oriented part of economics, especially how government policies affect economy (as a whole, of course).

Definition of Economics: Alfred Marshall

What is Economics?

Alfred Marshall (1842-1924), one of the most influential economists during his lifetime, defined economics as the "study of mankind in the ordinary business of lie; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being."

Principles of Economics, 8th ed. (New York, Macmillian, 1920), p.1.

To know more about Alfred Marshall, click the following links:
1. http://www.econlib.org/library/Enc/bios/Marshall.html
2. http://en.wikipedia.org/wiki/Alfred_Marshall
3. http://cepa.newschool.edu/het/profiles/marshall.htm

Solat Eidul Fitri di Gymnasium

8:00 pagi; Sedikit sahaja student yang memilih untuk solat di gymnasium. Takbir raya tetap bergema, walaupun alunan tidak sekuat di tanahair.

8:30 pagi; Malang sekali, tiba-tiba sahaja sebelum memulakan solat, seorang siswa bangun melaungkan lafaz iqamah.

8:45 pagi; Khatib pula tatkala memulakan khutbah memilih tahmid berbanding takbir yang disunnahkan untuk khutbah Eid.

Adakah Ramadhan yang berlalu tidak menyedarkan kita agar lebih tekun menyelusuri lembaran sunnah Rasul tercinta yang tersusun dalam kitab-kitab hadith? Sayang seribu kali sayang...

Mungkin untuk Eidul Adha akan kugagahi ke Masjid Besar Ottawa...