PBL: Macroeconomics. Competency: Aggregate Demand and Supply. Competency: Consumption and Saving
|
|
- Abigail Pearson
- 7 years ago
- Views:
Transcription
1 Competency: Aggregate Demand and Supply 1. Define aggregate demand and aggregate supply. 2. Describe the individual components of aggregate demand and aggregate supply. 3. Describe the problem that leakages present for maintaining aggregate demand, and the classical and Keynesian approaches to leakages. 4. Explain the derivation of the Aggregate Demand Equilibrium curve relating inflation and output levels, and how it shifts. 5. Explain the derivation of the Aggregate Supply Response curve relating inflation and output levels, and how it shifts. 6. Use the ASR/ADE model to describe the consequences of changes in fiscal policy, monetary policy, supply shocks, and investor and consumer confidence, depending on whether an economy is in a recession or at full employment. 7. Explain how aggregate demand and aggregate supply are used as a model of the macro economy. 8. Discuss the effects of aggregate demand and aggregate supply on the levels of output, employment, and prices. 9. Discuss how the determents of planned consumption and planned investment relate to aggregate demand. 10. Describe how Aggregate Demand and Aggregate Supply determine equilibrium price and output in the short-run and the long-run. Competency: Consumption and Saving 1. Discuss how the equilibrium levels of income, consumption, investment, and savings are determined in the Keynesian model, as presented in equations and graphs. 2. Identify the risk/return trade-offs for saving and investing. 3. Evaluate the impact of employment/unemployment on investment and savings. 4. Describe how saving and investing influence economic growth (capital formation). 5. Describe how interest rates balance savings and borrowing and affect consumer purchasing power. 6. Evaluate the impact of employment/unemployment on production, consumption, and exchange. 7. Describe the relationship of consumption and of saving to the economy. 8. Describe the effects of consumption on economic growth, inflation, and recession. 9. Describe the real gross domestic product. 10. Identify how the depreciation of natural capital can be included in measures of production and saving. 11. Discuss how consumption and saving affect the business cycle. Page 1
2 Competency: Economic Development 1. Explain the difference between economic growth and economic development. 2. List various factors that play a role in economic development. 3. Discuss the relationship between economic development and human development. 4. Identify major environmental challenges facing economic development. 5. Describe the causes of economic growth and development. 6. Describe the purpose of economic development in a city, state, or country. 7. Analyze policies and issues for economic development. 1. Define exchange rates. Competency: Exchange Rates 2. Describe how governments manipulate exchange rates for a purpose. 3. Explain how currency exchange rates affect international trade. 4. Discuss the concepts of Comparative Advantage, balance of payments and its components, and the determinants of exchange rates. 5. Calculate foreign exchange rates of various currencies. 6. Distinguish between currencies (e.g., floating versus fixed and convertible versus nonconvertible). 7. Explain how currency is affected by supply and demand. 8. Explain the duties of the International Monetary Fund. Page 2
3 Competency: Fiscal and Monetary Policies 1. Determine the difference between monetary and fiscal policy. 2. Compare the advantages and disadvantages of fiscal and monetary policies. 3. Discuss the accomplishments and limitations of monetary and fiscal policies. 4. Describe the types of monetary and fiscal policy tools. 5. Determine what changes will occur in output, employment, incomes, and prices when certain monetary and fiscal policy tools are implemented. 6. Differentiate between monetary and fiscal policies and identify when it may be appropriate to use a given policy. 7. Discuss the role of fiscal policy and the impact it can have on an economic system. 8. Describe how the government can affect the economy through fiscal policy. 9. Discuss the issue of lags in fiscal policy, and the relative advantages and disadvantages of automatic and discretionary policies. 10. Discuss the role of monetary policy and the impact it can have on an economic system. 11. Explain how federal budgetary policy and the Federal Reserve System s monetary policies influence overall levels of employment, interest rates, production, and prices. 12. Explain how monetary policy is expected to affect investment and aggregate demand. 13. Explain how the Federal Reserve System uses its control over the reserve ratio, open market operations, and the discount rate to control the money supply and the implementation of tight and easy money policy. Competency: Government Deficit and Debit 1. Distinguish between government deficits and government debt. 2. Describe the major types of government outlays, and major government revenue sources. 3. Analyze the relationship between the federal deficit and the national debt and how they are affected by the sources of national income and international trade. 4. Describe the role of government in the circular flow (e.g., taxation, services, and national debt). 5. Discuss the federal budget process and assess the impact of the government budget deficit and government debt and how they influence the economy. 6. Describe what causes a budget deficit and how does it change. 7. Describe why government deficit and debt rises when the economy is in a recession/depression. 8. Discuss the impact of changes in government spending, taxes and transfer on aggregate demand, and output. Page 3
4 Competency: Gross Domestic Product 1. Define the Gross Domestic Product, and identify what is included and excluded in its measurement. 2. Describe the three approaches to measuring GDP. 3. Calculate GDP growth rates, nominal GDP, and real GDP. 4. Identify commonly used price indices, and construct a constant-weight price index. 5. Describe the value and limitations of the chained dollar method in measuring real GDP. 6. Discuss why GDP does not measure well-being, and describe two examples of alternative measures of economic wellbeing. 7. Interpret fluctuations in the GDP. 8. Discuss major factors that affect the level of a country s Gross Domestic Product (GDP) (e.g., quantity and quality of natural resources, quantity and quality of human capital, and quantity and quality of capital stock). 9. Locate the per capita GDP of various nations to compare the levels of economic well-being. 1. Compare and contrast inflation and deflation. Competency: Inflation and Deflation 2. Describe how inflation is thought to normally behave over the business cycle. 3. Describe possible sources and causes of inflation. 4. Explain the measurement of inflation/deflation. 5. Explain how inflation affects entire economic systems. 6. Explain what is meant by zero inflation. 7. Discuss the relationship between monetary policy and inflation. 8. Explain how the Consumer Price Index measures the rate of inflation and interpret its relationship to purchasing power. 9. Discuss characteristics of a deflated economy. 10. Describe what causes deflation and how can it be prevented. 11. Discuss the role of the Federal Reserve in countering deflation. Page 4
5 Competency: International Trade 1. Describe major recent developments in the volume of international trade and financial flows. 2. Describe the Ricardian model of trade, and the principle of comparative advantage. 3. Discuss arguments for and against free trade. 4. Explain basic principles of international finance. 5. Discuss the implications of openness for monetary policy. 6. Identify important international institutions concerned with trade and finance. 7. Discuss the effects of international trade and finance on employment, prices, and incomes. 8. Analyze the impact of international issues and concerns on personal, national, and international economics. 9. Explain how specialization promotes international trade and how international trade increases total world output and interdependence among nations. 1. Explain supply and demand in the money market. Competency: Money and Interest Rates 2. Describe the characteristics, functions, and types of money. 3. Describe the basic workings of private and central banks. 4. Define the quantity equation, the quantity theory of money, and monetarism. 5. Explain the development and role of money in an economic system. 6. Describe what is meant by the time value of money. 7. Explain the role of the Federal Reserve System and the process by which it controls the money supply and interest rates. 8. Explain how interest rates are determined by market forces that influence the amount of borrowing and saving done by investors, consumers, and government officials. 9. Discuss the relation of bond prices to interest rates. 10. Explain the difference between real and nominal interest rates and their impact on the economy. 11. Describe how interest rates balance savings and borrowing and affect consumer purchasing power. 12. Distinguish between short-term and long-term interest rates and explain their relative significance. Page 5
6 Competency: Recessions and Depressions 1. Illustrate and measure the impact of inflation and recession. 2. Define recession and describe the difference in recession and depression. 3. Describe macroeconomic indicators of a recession. 4. Discuss how government responds to a recession. 5. Explain how the New Deal (FDR s policy) of the 1930 s pushed the economy out of a depression. 6. Explain common elements of a depression. Competency: Stabilization 1. Identify and evaluate how stabilizers (e.g., unemployment compensation, welfare benefits, Social Security, subsidies, and tax rates) affect economies in transition. 2. Describe the purpose of a stabilization policy. 3. Explain the role of the government or central bank in crisis stabilization. 4. Describe the role of stabilization in a business cycle. 5. List strategies attempted through a stabilization policy. 1. Define and contrast employment and unemployment. Competency: Wages and Unemployment 2. Explain how employment and unemployment are officially measured. 3. Identify the causes, consequences, and possible solutions to unemployment. 4. Explain why some analysts prefer measures of labor force utilization that differ from the official unemployment rate. 5. Discuss economists notions of frictional, structural, and cyclical unemployment. 6. Describe the classical theory of unemployment. 7. Describe theories of labor market imperfections. 8. Describe Keynes theory of aggregate demand, as it relates to wage levels and employment. 9. Discuss the concepts of natural rate and non-accelerating inflation rate of unemployment, and their relation to empirical evidence. 10. Analyze the impact of labor market imperfections and various government policies on wages and incentives to work. 11. Discuss wage differences among jobs and professions, using the laws of demand and supply and the concept of productivity. 12. Explain the significance of an unemployment rate, the number of new jobs created monthly, an inflation or deflation rate, and a rate of economic growth. Page 6
7 References: Career Cluster Resources for Marketing, Sales & Service National Association of State Directors of Career Technical Education Consortium. Washington, DC. Career Cluster Resources for Business, Management and Administration National Association of State Directors of Career Technical Education Consortium. Washington, DC. Career Cluster Resources for Finance National Association of State Directors of Career Technical Education Consortium. Washington, DC. Business Education Standards. National Business Education Association. Reston, VA. Macroeconomics in Context Student Study Guide Global Development and Environment Institute, Tufts University, Medford, MA. Principles of Economics Course Competencies. Georgia Technical College, Atlanta, GA. Principles of Macroeconomics Course Syllabus. University of Colorado, Boulder, CO. Principles of Macroeconomics Course Outline. St. Petersburg College, St. Petersburg, FL. Macroeconomics Economic Principles Course Outline. Fullerton College, Fullerton, CA. Macroeconomics Course Syllabus Harrisburg Area Community College, Harrisburg, PA. Principles of Macroeconomics Course Syllabus. Henry Ford Community College, Dearborn, MI. Introduction to Macroeconomics Course Description James Madison University, Harrisonburg, VA. Principles of Macroeconomics Course Syllabus University of Hawaii, Honolulu, HI. Principles of Macroeconomics Course Description Stetson School of Business and Economics, Mercer University, Macon, GA. Economic and Policy Course Syllabus. Georgia Institute of Technology, Georgia Tech University, Atlanta, GA. Page 7
FBLA: ECONOMICS. Competency: Basic Economic Concepts and Principles
Competency: Basic Economic Concepts and Principles 1. Define money (characteristics, role, and forms) and trace how money and resources flow through the American economic system. 2. Utilize decision-making
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Suvey of Macroeconomics, MBA 641 Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Modern macroeconomics emerged from
More informationPBL: Financial Concepts. Competency: Financial Instruments and Institutions
Competency: Financial Instruments and Institutions 1. Describe the standard and unique features of the following securities: bills, notes, bonds, zeros, and muni s. 2. Demonstrate an understanding of negotiable
More informationCHAPTER 7: AGGREGATE DEMAND AND AGGREGATE SUPPLY
CHAPTER 7: AGGREGATE DEMAND AND AGGREGATE SUPPLY Learning goals of this chapter: What forces bring persistent and rapid expansion of real GDP? What causes inflation? Why do we have business cycles? How
More information2.5 Monetary policy: Interest rates
2.5 Monetary policy: Interest rates Learning Outcomes Describe the role of central banks as regulators of commercial banks and bankers to governments. Explain that central banks are usually made responsible
More informationChapter 13. Aggregate Demand and Aggregate Supply Analysis
Chapter 13. Aggregate Demand and Aggregate Supply Analysis Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics In the short run, real GDP and
More informationProfessor Christina Romer. LECTURE 17 MACROECONOMIC VARIABLES AND ISSUES March 17, 2016
Economics 2 Spring 2016 Professor Christina Romer Professor David Romer LECTURE 17 MACROECONOMIC VARIABLES AND ISSUES March 17, 2016 I. MACROECONOMICS VERSUS MICROECONOMICS II. REAL GDP A. Definition B.
More informationS.Y.B.COM. (SEM-III) ECONOMICS
Fill in the Blanks. Module 1 S.Y.B.COM. (SEM-III) ECONOMICS 1. The continuous flow of money and goods and services between firms and households is called the Circular Flow. 2. Saving constitute a leakage
More information2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E. The College Board. College Level Examination Program
2 0 0 0 E D I T I O N CLEP O F F I C I A L S T U D Y G U I D E College Level Examination Program The College Board Principles of Macroeconomics Description of the Examination The Subject Examination in
More informationEdmonds Community College Macroeconomic Principles ECON 202C - Winter 2011 Online Course Instructor: Andy Williams
Edmonds Community College Macroeconomic Principles ECON 202C - Winter 2011 Online Course Instructor: Andy Williams Textbooks: Economics: Principles, Problems and Policies, 18th Edition, by McConnell, Brue,
More information1. Firms react to unplanned inventory investment by increasing output.
Macro Exam 2 Self Test -- T/F questions Dr. McGahagan Fill in your answer (T/F) in the blank in front of the question. If false, provide a brief explanation of why it is false, and state what is true.
More informationChapter 12 Unemployment and Inflation
Chapter 12 Unemployment and Inflation Multiple Choice Questions 1. The origin of the idea of a trade-off between inflation and unemployment was a 1958 article by (a) A.W. Phillips. (b) Edmund Phelps. (c)
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Econ 111 Summer 2007 Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The classical dichotomy allows us to explore economic growth
More informationCosumnes River College Principles of Macroeconomics Problem Set 11 Will Not Be Collected
Name: Solutions Cosumnes River College Principles of Macroeconomics Problem Set 11 Will Not Be Collected Fall 2015 Prof. Dowell Instructions: This problem set will not be collected. You should still work
More informationEcon 303: Intermediate Macroeconomics I Dr. Sauer Sample Questions for Exam #3
Econ 303: Intermediate Macroeconomics I Dr. Sauer Sample Questions for Exam #3 1. When firms experience unplanned inventory accumulation, they typically: A) build new plants. B) lay off workers and reduce
More informationSubject CT7 Business Economics Core Technical Syllabus
Subject CT7 Business Economics Core Technical Syllabus for the 2016 exams 1 June 2015 Aim The aim of the Business Economics subject is to introduce students to the core economic principles and how these
More informationCHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH
CHAPTER 5: MEASURING GDP AND ECONOMIC GROWTH Learning Goals for this Chapter: To know what we mean by GDP and to use the circular flow model to explain why GDP equals aggregate expenditure and aggregate
More informationChapter 10 Fiscal Policy Macroeconomics In Context (Goodwin, et al.)
Chapter 10 Fiscal Policy Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter introduces you to a formal analysis of fiscal policy, and puts it in context with real-world data and
More informationEC2105, Professor Laury EXAM 2, FORM A (3/13/02)
EC2105, Professor Laury EXAM 2, FORM A (3/13/02) Print Your Name: ID Number: Multiple Choice (32 questions, 2.5 points each; 80 points total). Clearly indicate (by circling) the ONE BEST response to each
More informationEconomics 101 Multiple Choice Questions for Final Examination Miller
Economics 101 Multiple Choice Questions for Final Examination Miller PLEASE DO NOT WRITE ON THIS EXAMINATION FORM. 1. Which of the following statements is correct? a. Real GDP is the total market value
More informationEcon 202 Section 4 Final Exam
Douglas, Fall 2009 December 15, 2009 A: Special Code 00004 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 4 Final Exam 1. Oceania buys $40
More informationEconomics 152 Solution to Sample Midterm 2
Economics 152 Solution to Sample Midterm 2 N. Das PART 1 (84 POINTS): Answer the following 28 multiple choice questions on the scan sheet. Each question is worth 3 points. 1. If Congress passes legislation
More informationThinkwell s Homeschool Economics Course Lesson Plan: 36 weeks
Thinkwell s Homeschool Economics Course Lesson Plan: 36 weeks Welcome to Thinkwell s Homeschool Economics! We re thrilled that you ve decided to make us part of your homeschool curriculum. This lesson
More informationChapter 1. Why Study Money, Banking, and Financial Markets?
Chapter 1 Why Study Money, Banking, and Financial Markets? Why Study Money, Banking, and Financial Markets To examine how financial markets such as bond, stock and foreign exchange markets work To examine
More informationUse the following to answer question 9: Exhibit: Keynesian Cross
1. Leading economic indicators are: A) the most popular economic statistics. B) data that are used to construct the consumer price index and the unemployment rate. C) variables that tend to fluctuate in
More informationBADM 527, Fall 2013. Midterm Exam 2. Multiple Choice: 3 points each. Answer the questions on the separate bubble sheet. NAME
BADM 527, Fall 2013 Name: Midterm Exam 2 November 7, 2013 Multiple Choice: 3 points each. Answer the questions on the separate bubble sheet. NAME 1. According to classical theory, national income (Real
More informationPreparation course MSc Business & Econonomics- Macroeconomics: Introduction & Concepts
Preparation course MSc Business & Econonomics- Macroeconomics: Introduction & Concepts Tom-Reiel Heggedal Economics Department 2014 TRH (Institute) Intro&Concepts 2014 1 / 20 General Information Me: Tom-Reiel
More information2.If actual investment is greater than planned investment, inventories increase more than planned. TRUE.
Macro final exam study guide True/False questions - Solutions Case, Fair, Oster Chapter 8 Aggregate Expenditure and Equilibrium Output 1.Firms react to unplanned inventory investment by reducing output.
More informationAS Economics. Introductory Macroeconomics. Sixth Form pre-reading
AS Economics Introductory Macroeconomics Sixth Form pre-reading National income National income (Y) = money value of goods and services produced in an economy over a period of time, usually one year. National
More informationEcon 202 Section 2 Final Exam
Douglas, Fall 2009 December 17, 2009 A: Special Code 0000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 202 Section 2 Final Exam 1. The present value
More informationThe Fiscal Policy and The Monetary Policy. Ing. Mansoor Maitah Ph.D.
The Fiscal Policy and The Monetary Policy Ing. Mansoor Maitah Ph.D. Government in the Economy The Government and Fiscal Policy Fiscal Policy changes in taxes and spending that affect the level of GDP to
More informationChapter 12: Gross Domestic Product and Growth Section 1
Chapter 12: Gross Domestic Product and Growth Section 1 Key Terms national income accounting: a system economists use to collect and organize macroeconomic statistics on production, income, investment,
More informationThe Circular Flow of Income and Expenditure
The Circular Flow of Income and Expenditure Imports HOUSEHOLDS Savings Taxation Govt Exp OTHER ECONOMIES GOVERNMENT FINANCIAL INSTITUTIONS Factor Incomes Taxation Govt Exp Consumer Exp Exports FIRMS Capital
More informationMEASURING GDP AND ECONOMIC GROWTH CHAPTER
MEASURING GDP AND ECONOMIC GROWTH CHAPTER Objectives After studying this chapter, you will able to Define GDP and use the circular flow model to explain why GDP equals aggregate expenditure and aggregate
More informationLong run v.s. short run. Introduction. Aggregate Demand and Aggregate Supply. In this chapter, look for the answers to these questions:
33 Aggregate Demand and Aggregate Supply R I N C I L E S O F ECONOMICS FOURTH EDITION N. GREGOR MANKIW Long run v.s. short run Long run growth: what determines long-run output (and the related employment
More informationBUSINESS ECONOMICS CEC2 532-751 & 761
BUSINESS ECONOMICS CEC2 532-751 & 761 PRACTICE MACROECONOMICS MULTIPLE CHOICE QUESTIONS Warning: These questions have been posted to give you an opportunity to practice with the multiple choice format
More informationLECTURE NOTES ON MACROECONOMIC PRINCIPLES
LECTURE NOTES ON MACROECONOMIC PRINCIPLES Peter Ireland Department of Economics Boston College peter.ireland@bc.edu http://www2.bc.edu/peter-ireland/ec132.html Copyright (c) 2013 by Peter Ireland. Redistribution
More informationChapter 12. Aggregate Expenditure and Output in the Short Run
Chapter 12. Aggregate Expenditure and Output in the Short Run Instructor: JINKOOK LEE Department of Economics / Texas A&M University ECON 203 502 Principles of Macroeconomics Aggregate Expenditure (AE)
More informationChapter 11: Activity
Economics for Managers by Paul Farnham Chapter 11: Measuring Macroeconomic Activity 11.1 Measuring Gross Domestic Product (GDP) GDP: the market value of all currently yproduced final goods and services
More informationObjectives for Chapter 9 Aggregate Demand and Aggregate Supply
1 Objectives for Chapter 9 Aggregate Demand and Aggregate Supply At the end of Chapter 9, you will be able to answer the following: 1. Explain what is meant by aggregate demand? 2. Name the four categories
More informationAgenda. The IS-LM/AD-AS Model: A General Framework for Macroeconomic Analysis, Part 3. Disequilibrium in the AD-AS model
Agenda The IS-LM/AD-AS Model: A General Framework for Macroeconomic Analysis, art 3 rice Adjustment and the Attainment of General Equilibrium 13-1 13-2 General equilibrium in the AD-AS model Disequilibrium
More informationa) Aggregate Demand (AD) and Aggregate Supply (AS) analysis
a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis Determinants of AD: Aggregate demand is the total demand in the economy. It measures spending on goods and services by consumers, firms, the
More informationEcon 202 Final Exam. Table 3-1 Labor Hours Needed to Make 1 Pound of: Meat Potatoes Farmer 8 2 Rancher 4 5
Econ 202 Final Exam 1. If inflation expectations rise, the short-run Phillips curve shifts a. right, so that at any inflation rate unemployment is higher. b. left, so that at any inflation rate unemployment
More informationSouth African Trade-Offs among Depreciation, Inflation, and Unemployment. Alex Diamond Stephanie Manning Jose Vasquez Erin Whitaker
South African Trade-Offs among Depreciation, Inflation, and Unemployment Alex Diamond Stephanie Manning Jose Vasquez Erin Whitaker April 16, 2003 Introduction South Africa has one of the most unique histories
More informationName: Date: 3. Variables that a model tries to explain are called: A. endogenous. B. exogenous. C. market clearing. D. fixed.
Name: Date: 1 A measure of how fast prices are rising is called the: A growth rate of real GDP B inflation rate C unemployment rate D market-clearing rate 2 Compared with a recession, real GDP during a
More informationLearner Guide. Cambridge IGCSE Economics
Learner Guide Cambridge IGCSE Economics 0455 Cambridge International Examinations retains the copyright on all its publications. Registered Centres are permitted to copy material from this booklet for
More informationMacroeconomics 2301 Potential questions and study guide for exam 2. Any 6 of these questions could be on your exam!
Macroeconomics 2301 Potential questions and study guide for exam 2 Any 6 of these questions could be on your exam! 1. GDP is a key concept in Macroeconomics. a. What is the definition of GDP? b. List and
More informationExam 1 Review. 3. A severe recession is called a(n): A) depression. B) deflation. C) exogenous event. D) market-clearing assumption.
Exam 1 Review 1. Macroeconomics does not try to answer the question of: A) why do some countries experience rapid growth. B) what is the rate of return on education. C) why do some countries have high
More informationAGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand
AGGREGATE DEMAND AND AGGREGATE SUPPLY The Influence of Monetary and Fiscal Policy on Aggregate Demand Suppose that the economy is undergoing a recession because of a fall in aggregate demand. a. Using
More informationChapter 9 Aggregate Demand and Economic Fluctuations Macroeconomics In Context (Goodwin, et al.)
Chapter 9 Aggregate Demand and Economic Fluctuations Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter first introduces the analysis of business cycles, and introduces you to the
More informationAgenda. Business Cycles. What Is a Business Cycle? What Is a Business Cycle? What is a Business Cycle? Business Cycle Facts.
Agenda What is a Business Cycle? Business Cycles.. 11-1 11-2 Business cycles are the short-run fluctuations in aggregate economic activity around its long-run growth path. Y Time 11-3 11-4 1 Components
More informationBusiness Conditions Analysis Prof. Yamin Ahmad ECON 736
Business Conditions Analysis Prof. Yamin Ahmad ECON 736 Sample Final Exam Name Id # Instructions: There are two parts to this midterm. Part A consists of multiple choice questions. Please mark the answers
More informationMacroeconomics Machine-graded Assessment Items Module: Fiscal Policy
Macroeconomics Machine-graded Assessment Items Module: Fiscal Policy Machine-graded assessment question pools are provided for your reference and are organized by learning outcome. It is your responsibility
More information7 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Chapter. Key Concepts
Chapter 7 AGGREGATE SUPPLY AND AGGREGATE DEMAND* Key Concepts Aggregate Supply The aggregate production function shows that the quantity of real GDP (Y ) supplied depends on the quantity of labor (L ),
More informationGovernment Budget and Fiscal Policy CHAPTER
Government Budget and Fiscal Policy 11 CHAPTER The National Budget The national budget is the annual statement of the government s expenditures and tax revenues. Fiscal policy is the use of the federal
More informationChapter 18. MODERN PRINCIPLES OF ECONOMICS Third Edition
Chapter 18 MODERN PRINCIPLES OF ECONOMICS Third Edition Fiscal Policy Outline Fiscal Policy: The Best Case The Limits to Fiscal Policy When Fiscal Policy Might Make Matters Worse So When Is Fiscal Policy
More informationAssignment #3. ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma. Notice:
ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Assignment #3 Notice: (1) There are 25 multiple-choice problems and 2 analytic (short-answer) problems. This assignment is due on March
More informationINTRODUCTION AGGREGATE DEMAND MACRO EQUILIBRIUM MACRO EQUILIBRIUM THE DESIRED ADJUSTMENT THE DESIRED ADJUSTMENT
Chapter 9 AGGREGATE DEMAND INTRODUCTION The Great Depression was a springboard for the Keynesian approach to economic policy. Keynes asked: What are the components of aggregate demand? What determines
More informationFinal. 1. (2 pts) What is the expected effect on the real demand for money of an increase in the nominal interest rate? How to explain this effect?
Name: Number: Nova School of Business and Economics Macroeconomics, 1103-1st Semester 2013-2014 Prof. André C. Silva TAs: João Vaz, Paulo Fagandini, and Pedro Freitas Final Maximum points: 20. Time: 2h.
More informationPolitics, Surpluses, Deficits, and Debt
Defining Surpluses and Debt Politics, Surpluses,, and Debt Chapter 11 A surplus is an excess of revenues over payments. A deficit is a shortfall of revenues relative to payments. 2 Introduction After having
More informationEconomic Systems. 1. MARKET ECONOMY in comparison to 2. PLANNED ECONOMY
Economic Systems The way a country s resources are owned and the way that country takes decisions as to what to produce, how much to produce and how to distribute what has been produced determine the type
More informationEcon 202 H01 Final Exam Spring 2005
Econ202Final Spring 2005 1 Econ 202 H01 Final Exam Spring 2005 1. Which of the following tends to reduce the size of a shift in aggregate demand? a. the multiplier effect b. the crowding-out effect c.
More informationThe level of price and inflation Real GDP: the values of goods and services measured using a constant set of prices
Chapter 2: Key Macroeconomics Variables ECON2 (Spring 20) 2 & 4.3.20 (Tutorial ) National income accounting Gross domestic product (GDP): The market value of all final goods and services produced within
More informationRefer to Figure 17-1
Chapter 17 1. Inflation can be measured by the a. change in the consumer price index. b. percentage change in the consumer price index. c. percentage change in the price of a specific commodity. d. change
More informationTHREE KEY FACTS ABOUT ECONOMIC FLUCTUATIONS
15 In this chapter, look for the answers to these questions: What are economic fluctuations? What are their characteristics? How does the model of demand and explain economic fluctuations? Why does the
More information10/7/2013. Chapter 9: Introduction to Economic Fluctuations. Facts about the business cycle. Unemployment. Okun s Law Y Y
Facts about the business cycle Chapter 9: GD growth averages 3 3.5 percent per year over the long run with large fluctuations in the short run. Consumption and investment fluctuate with GD, but consumption
More informationECONOMIC GROWTH* Chapter. Key Concepts
Chapter 5 MEASURING GDP AND ECONOMIC GROWTH* Key Concepts Gross Domestic Product Gross domestic product, GDP, is the market value of all the final goods and services produced within in a country in a given
More informationIn this chapter we learn the potential causes of fluctuations in national income. We focus on demand shocks other than supply shocks.
Chapter 11: Applying IS-LM Model In this chapter we learn the potential causes of fluctuations in national income. We focus on demand shocks other than supply shocks. We also learn how the IS-LM model
More informationThe Aggregate Demand- Aggregate Supply (AD-AS) Model
The AD-AS Model The Aggregate Demand- Aggregate Supply (AD-AS) Model Chapter 9 The AD-AS Model addresses two deficiencies of the AE Model: No explicit modeling of aggregate supply. Fixed price level. 2
More informationWith lectures 1-8 behind us, we now have the tools to support the discussion and implementation of economic policy.
The Digital Economist Lecture 9 -- Economic Policy With lectures 1-8 behind us, we now have the tools to support the discussion and implementation of economic policy. There is still great debate about
More informationMACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS
MACROECONOMIC AND INDUSTRY ANALYSIS VALUATION PROCESS BUSINESS ANALYSIS INTRODUCTION To determine a proper price for a firm s stock, security analyst must forecast the dividend & earnings that can be expected
More information3 Macroeconomics LESSON 8
3 Macroeconomics LESSON 8 Fiscal Policy Introduction and Description Fiscal policy is one of the two demand management policies available to policy makers. Government expenditures and the level and type
More information0 100 200 300 Real income (Y)
Lecture 11-1 6.1 The open economy, the multiplier, and the IS curve Assume that the economy is either closed (no foreign trade) or open. Assume that the exchange rates are either fixed or flexible. Assume
More informationEconomics 212 Principles of Macroeconomics Study Guide. David L. Kelly
Economics 212 Principles of Macroeconomics Study Guide David L. Kelly Department of Economics University of Miami Box 248126 Coral Gables, FL 33134 dkelly@miami.edu First Version: Spring, 2006 Current
More informationAggregate Demand, Aggregate Supply, and the Self-Correcting Economy
Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy The Role of Aggregate Demand & Supply Endogenizing the Price Level Inflation Deflation Price Stability The Aggregate Demand Curve Relates
More informationChapter 4 Consumption, Saving, and Investment
Chapter 4 Consumption, Saving, and Investment Multiple Choice Questions 1. Desired national saving equals (a) Y C d G. (b) C d + I d + G. (c) I d + G. (d) Y I d G. 2. With no inflation and a nominal interest
More informationWhat is fiscal policy? Fiscal policy is the use of government spending and taxation to influence the level of aggregate demand and economic activity
Macroeconomic policy Fiscal Policy What is fiscal policy? Fiscal policy is the use of government spending and taxation to influence the level of aggregate demand and economic activity List the main types
More informationFISCAL POLICY* Chapter. Key Concepts
Chapter 11 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomic
More informationPre-Test Chapter 11 ed17
Pre-Test Chapter 11 ed17 Multiple Choice Questions 1. Built-in stability means that: A. an annually balanced budget will offset the procyclical tendencies created by state and local finance and thereby
More informationLecture/Classroom...45 hours Laboratory...0 hours
SOUTHEAST COMMUNITY COLLEGE / LINCOLN NORTHEAST HIGH SCHOOL ADVANCED PLACEMENT ECONOMICS Beatrice and Lincoln, Nebraska Business/Mass Media Occupations Division Business Administration Program FALL 2007/8
More informationAggregate Supply and Aggregate Demand
26 Aggregate Supply and Aggregate Demand Learning Objectives Explain what determines aggregate supply Explain what determines aggregate demand Explain what determines real GDP and the price level and how
More informationAggregate Demand and Aggregate Supply Ing. Mansoor Maitah Ph.D. et Ph.D.
Aggregate Demand and Aggregate Supply Ing. Mansoor Maitah Ph.D. et Ph.D. Aggregate Demand and Aggregate Supply Economic fluctuations, also called business cycles, are movements of GDP away from potential
More informationI. Introduction to Aggregate Demand/Aggregate Supply Model
University of California-Davis Economics 1B-Intro to Macro Handout 8 TA: Jason Lee Email: jawlee@ucdavis.edu I. Introduction to Aggregate Demand/Aggregate Supply Model In this chapter we develop a model
More informationchapter: Aggregate Demand and Aggregate Supply Krugman/Wells 2009 Worth Publishers 1 of 58
chapter: 12 >> Aggregate Demand and Aggregate Supply Krugman/Wells 2009 Worth Publishers 1 of 58 WHAT YOU WILL LEARN IN THIS CHAPTER How the aggregate demand curve illustrates the relationship between
More informationUse the following to answer question 15: Exhibit: Short-run Phillips Curve. Page 3
Chapter 13 1. According to the sticky-price model: A) all firms announce their prices in advance. B) all firms set their prices in accord with observed prices and output. C) some firms set their prices
More informationECO 2251 PRINCIPLES OF MACROECONOMICS I Section: TEWA Fall Semester 2010
ECO 2251 PRINCIPLES OF MACROECONOMICS I Section: TEWA Fall Semester 2010 Instructor: Course Prerequisites: Office Hours: Phillip Mixon Assistant Professor of Economics Center for International Business
More informationPre- and Post-Test for The Great Depression Curriculum Answer Key
Pre- and Post-Test for The Great Depression Curriculum Answer Key 1. Deflation occurs when: a. there is a sustained increase in the price of gasoline. b. there is a sustained decrease in the price of gasoline.
More informationEcon 336 - Spring 2007 Homework 5
Econ 336 - Spring 2007 Homework 5 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The real exchange rate, q, is defined as A) E times P B)
More informationIntroduction to Macroeconomics. TOPIC 1: Introduction, definition, measures
TOPIC 1: Introduction, definitions, measures Annaïg Morin CBS - Department of Economics August 2013 What is macroeconomics about? Understanding the behavior of an economy as a whole. studying aggregated
More information1. Fill in the blanks for the following sentence: A rise in taxes on households will shift AD to the, this will push.
Homework 16 1. Fill in the blanks for the following sentence: A rise in taxes on households will shift AD to the, this will push. A. right; down B. left; down C. left; up D. right; up 2. During a recession,
More informationAnswer: C Learning Objective: Money supply Level of Learning: Knowledge Type: Word Problem Source: Unique
1.The aggregate demand curve shows the relationship between inflation and: A) the nominal interest rate. D) the exchange rate. B) the real interest rate. E) short-run equilibrium output. C) the unemployment
More informationMacroeconomics, Fall 2007 Exam 3, TTh classes, various versions
Name: _ Days/Times Class Meets: Today s Date: Macroeconomics, Fall 2007 Exam 3, TTh classes, various versions Read these Instructions carefully! You must follow them exactly! I) On your Scantron card you
More informationECONOMIC QUESTIONS FOR THE MASTER'S EXAM
ECONOMIC QUESTIONS FOR THE MASTER'S EXAM Introduction 1. What is economics? Discuss the purpose and method of work of economists. Consider observation, induction, deduction and scientific criticism. 2.
More informationEconomics Proposal for CORE 2014 due by February 1, 2013
Economics Proposal for CORE 2014 due by February 1, 2013 ------------------------------------------------------------------------------------------------------ Executive Summary: The Economics Curriculum
More informationCH 10 - REVIEW QUESTIONS
CH 10 - REVIEW QUESTIONS 1. The short-run aggregate supply curve is horizontal at: A) a level of output determined by aggregate demand. B) the natural level of output. C) the level of output at which the
More informationChapter 11. Keynesianism: The Macroeconomics of Wage and Price Rigidity. 2008 Pearson Addison-Wesley. All rights reserved
Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity Chapter Outline Real-Wage Rigidity Price Stickiness Monetary and Fiscal Policy in the Keynesian Model The Keynesian Theory of Business
More informationSample Question Paper (Set-2) Economics (030) Class XII (2015-16) Section A: Microeconomics
Sample Question Paper (Set-2) Economics (030) Class XII (2015-16) Time : 3 Hours Maximum Marks : 100 Instructions: 1. All questions in both sections are compulsory. However, there is internal choice in
More information11-1. Framework of Analysis. Global Economic Considerations. Figure 12.1 Change in Real Exchange Rate: Dollar Versus Major Currencies.
Framework of Analysis CHAPTER 12 Macroeconomic and Industry Analysis Fundamental Analysis Approach to Fundamental Analysis Domestic and global economic analysis Industry analysis Company analysis Why use
More informationTHE OPEN AGGREGATE DEMAND AGGREGATE SUPPLY MODEL.
THE OPEN AGGREGATE DEMAND AGGREGATE SUPPLY MODEL. Introduction. This model represents the workings of the economy as the interaction between two curves: - The AD curve, showing the relationship between
More information