Course description Macroeconomics is the most disputed, confused, yet excited field in economics. This course introduces you how economists think about those macroeconomic problems such as inflation, unemployment and recession, and how macroeconomic policies

Chapter 7: The Analysis of Price Determination Gang Gong Copyright Notes: This electronic file is only used as a lecture notes for the student in this class. It is not allowed to be used for presentation anywhere else without the permission from the author

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:

Introduction The aim of this chapter is to study how output is determined in Keynesian framework. The analysis in this chapter is often named multiplier analysis

What is economics? Normative Definition Economics is the science that studies how to efficiently allocate economic resources Positive definition economics is the science that studies how an economy operates or how economic variables are

1. Please express the model of natural rate of unemployment according to blanchards book and then give your comments 2. How can you explain the aggregate demand and aggregate supply curves. How they are different from the usual definition on demand and supply curves

Chapter 7 develops the concept of efficiency and explores why many tasks are best left up to the market It presents the concept of economic surplus in detail and looks at how unregulated markets can generate the largest possible economic surplus Chapter 7: Efficiency and Exchange

1. Which of the following explains why automobile engines are smaller in England than in the united states?

What is money? Notes Coins Current deposits （活期存款） other deposits with banks（银行的其它存款） Currency(现金) M3 = C + D

Microeconomics Microeconomics(微观经济学) is the study of how individual households and firms make decisions and how they interact with one another in markets