Chapter 10 Cytoskeleton System 1 Introduction A Conception of Cytoskeleton(Narrow sense) A complex network of interconnected microfilaments, microtubules and intermediate filaments that extends throughout the cytosol

Questions from Last Lecture Demand for money↑ =)=l ,Y) ↑ while fixed →l(r,y: hold& to balance the pressure ofd↑; hold,↑ to balance

How the sr and lr differ In the Lr, prices are flexible and can respond to changes in S or D. In the Sr many prices are stuck at some predetermined level In the sr, monetary policy does have a potent effect on output and employment

Topics 4 questions from before HW#1 Unemployment Natural rate of unemployment reasons for unemployment Frictional unemployment Wait unemployment Patterns of unemployment

The Data of macroeconomics * Measure of economic activity Gross Domestic Product(GDP) Total expenditure on domestically-produced final goods and services Total income earned by domestically located factors of production

Microeconomics behind Macroeconomics Consumption Investment Money and Advances in business cycle model

Interest-Rate Differentials Country risk&ex -rate- expectations Country risk Political upheaval default on loan repayments higher i-rate to compensate Ex-rate expectations expect RMB to appreciate loans in RMB can pay a lower i-rate

Effects of Policies on Real Ex--rate 1. Home fiscal policy (expansionary) →S→(S-)↓ → Domestic currency invested abroad↓ Domestic currency appreciates → Nominal ex--rate↑ → Real ex--rate↑(if prices do not change) Domestic goods become more expensive → Exports↓& imports↑

Government Debt Scale of govern. debt Is budget deficit correctly measured? Traditional view of govern. Debt Ricardian equivalence Other possible effects of govern. debt

Inflation, Unemployment, and the Phillips Curve Phillips Curve: relationship between inflation and unemployment A..Phillips (1958) \The relationship between unemployment and the rate of change of money wages in the united kingdom, 1861- 1957,\ Economica 25