Intermediate Macroeconomics Review for Quiz 1
Intermediate Macroeconomics Review for Quiz 1
Introduction x What are the three big problems macroeconomics studies? 兴GDP Calculation intermediate: inventories used: GNP Real v.s. Nominal(deflator; CPD) 兴 Okun's law
Introduction What are the three big problems macroeconomics studies? GDP -- Calculation: intermediate;inventories;used;GNP -- Real v.s. Nominal (deflator; CPI) Okun’s Law
National income (Classical Model) 煤 Assumptions --l&k are fixed technology is fixed production fn diminishing marginal product perfectly competitive firm no transfer payments --t is fixed --g is fixed
National Income (Classical Model) Assumptions -- L & K are fixed -- technology is fixed -- production fn diminishing marginal product -- perfectly competitive firm -- no transfer payments -- T is fixed -- G is fixed
National income (Classical Model) x Supply for goods and services profit maximization → MPL MPK → L or k income x Demand for goods and services(Y=C+I+G) 兴 Equilibrium x Loanable funds market(graph shifts)
National Income (Classical Model) Supply for goods and services ---profit Maximization → MPL, MPK → L or K income Demand for goods and services (Y=C+I+G) Equilibrium Loanable funds market (graph & shifts)
Unemployment xk Natural rate of unemployment definition calculation(meaning of s f) x Reasons for unemployment frictional(takes time to match jobs e. g technology improvement; sectoral geographical)& policy analysis wage rigidity(3 reasons)
Unemployment Natural rate of unemployment -- definition & calculation (meaning of s & f) Reasons for unemployment -- frictional (takes time to match jobs e.g. technology improvement; sectoral; geographical) & policy analysis -- wage rigidity (3 reasons)
Money 煤 Functions 煤 Measure xx Monetary theories(3)
Money Functions Measure Monetary theories (3)
Inflation 兴 Interest rate 煤 The fisher effect ※ Demand for money x How to stop hyperinflation xx Social costs of inflation(expected unexpected)
Inflation Interest rate The Fisher effect Demand for money How to stop hyperinflation Social costs of inflation (expected & unexpected)
