Chapter 1: The Science of Macroeconomics Chapter 2: The Macroeconomic Variables Part II: Keynesian Macroeconomic Analysis Chapter 3: The Product Market Analysis Chapter 4: The Money Market Analysis Chapter 5: The IS-LM Model
Introduction The objective of this chapter is to study how employment is determined in the labor market We are considering the labor market in which the following relation should always hold:
Solow growth model 1. Production function(total; per capita) 2. Savings investment schedule 3. Depreciation 4. Steady state 5. Golden rule 6. Path from one steady state to the Golden Rule steady state
Introduction What are the three big problems macroeconomics studies? GDP -- Calculation: intermediate inventories;used;GNP Real v.s. Nominal (deflator; CPD) Okun'sLaw