Topics to be Discussed National Income Accounting and the Balance of Payments other concepts The determination of exchange rate floating exchange rate system Fixed exchange rate system Trade environment and policy o Summary of the open economy
8.1 Keynesian consumption function 8.2 A simple two-period model 8.3 Consumption theory after Keynes Permanent-income Hypothesis Life-style Hypothesis 8.4 Real interest& decision-making- between consumption and saving
7.1 Fiscal policies and effects 7.2 Monetary policies and effects 7.3 Policy mix 7.4 Economic fluctuation and eliminating the fluctuations with economic policies 7.5 Macroeconomic policy practice
Topics to be Discusses Aggregate Demand (AD) Function Aggregate Supply (AS) Function AS-AD Model Price Changes and Determination of Output Price Adjustment Process
