Parkes' Principles of Macroeconomics Assignments Page
Summer 1, 2018
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Tentative Schedule and Course Assignments:
- Review the Exam
- Chapter 20: Aggregate Demand and Aggregate Supply
- Why the Aggregate Demand Curve Shifts: C, I, G, NX
- The Aggregate Supply Curve
- Vertical Long-Run AS
- Shifts in the LRAS: Land, Labor, Capital, Technology
- Short-Run Aggregate Supply
Quiz #11 - Scenario #1 - Brexit, or recession abroad
LONG-RUN shift, Note the SRAS shifts too
Scenario #2 - Long-run Shift (SRAS too)"Hydraulic Fracking" The Price level falls and Potential Output rises
PowerPoint for Chapter 20: Aggregate Demand and Aggregate Supply
June 26, 2018 Chapter 21: Fiscal Policy and Aggregate Demand
- Chapter 20: Aggregate Demand and Aggregate Supply continued - Review concept - SRAS shifts, SR Equilibrium to LR
- Over time ... the Self-correcting mechanism: wages adjust, business costs adjust, price expectations adjust SHIFTING SRAS
- Over time the Long-run Equilibrium is reached
- Stagflation
- Begin Chapter 21: Fiscal Policy and Aggregate Demand - the Multiplier - starting with PPT slide #21
- PowerPoint for Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
June 27, 2018 Chapter 21: Fiscal Policy and Aggregate Demand
June 28, 2018 Chapter 18: Open-Economy Macroeconomics: Basic Concepts
- Any unfinished discussion of Stabilization Policy, Activist versus Nonactivists, Fiscal and Monetary Policy
- Chapter 18: Open-Economy Macroeconomics: Basic Concepts
- International Flows of Goods and Capital
- Net Exports = Net Capital Outflows
- Saving = Investment revisited
- Prices for International Transactions: Nominal versus Real exchange rates
PowerPoint for Chapter 18: Open-Economy Macroeconomics Basic Concepts
Week 5
July 2, 2018 Chapter 19: A Macroeconomic Theory of the Open Economy and REVIEW
- Any unfinished discussion of the 5 Scenarios
- Chapter 19: A Macroeconomic Theory of the Open Economy
- Supply and Demand for Loanable Funds and for Foreign Currency Exchange
- Alteration in the S & D for LF
- Equilibrium in the Open Economy
- How Policies and Events Affect the Open Economy
- Government Budget Deficits
Free Quiz #3: On the Final Exam!
PowerPoint for Chapter 19: A Macroeconomic Theory of the Open Economy
July 3, 2018 Final Exam, All Chapters
PAST ASSIGNMENTS:
June 20, 2018 Chapter 17: Money Growth and Inflation
- Chapter 17: Money Growth and Inflation
- The Classical Theory of Inflation
- The Level of Prices and the Value of Money
- Money Supply, Money Demand, and Monetary Equilibrium
- The Effects of a Monetary Injection
- A Brief Look at the Adjustment Process
- The Classical Dichotomy and Money Neutrality
- Velocity and the Quantity Equation
- The Inflation Tax
- The Fisher Effect
- The Costs of Inflation
- A Fall in PP? The Inflation Fallacy
- Shoeleather Costs
- Menu Costs
- Other Costs
- The Wizard of OZ
PowerPoint for Chapter 17 Money Growth and Inflation
June 21, 2018 Exam 3, Chapters 15 - 17
Week 2
June 11, 2018 Chapter 10: Measuring a Nation's Income and Begin Chapter 11: Measuring the Cost of Living
- Review the Exam - Quiz
- Chapter 10: Measuring a Nation's Income
- Income versus Expenditure - two ways to Measure GDP
- Measurement of GDP
- The Four Components of GDP
- Consumption or PCE (Personal Consumption Expenditures)
- Investment Expenditures
- Government Expenditures
- Net Export Expenditures (Exports minus Imports)
- Real versus Nominal GDP
- Quiz #5: Calculate Real GDP, PCE, and G growth rates and PCE/GDP Answers to Quiz #5 The numbers came from here for GDP and C and
here for G
- The GDP Deflator
Premium PowerPoint for Ch 10 Measuring a Nation's Income
Chapter 11: Measuring the Cost of Living
The Consumer Price Index
How is the CPI calculated
- Fix the basket of goods
- Find the prices
- Compute the basket's cost
- Choose a base year and compute the basket
- Compute the inflation rate
Review: How is the CPI calculated
Questions and answers to Quizzes #4 and #6
Premium PowerPoint for Ch. 11 Measuring the Cost of Living
June 12, 2018 Finish Ch. 11 Measuring the Cost of Living and begin Chapter 12: Production and Growth
- Chapter 11: Measuring the Cost of Living - continued
- Problems in Measuring the Cost of Living
- 1. Substitution Bias
- 2. Introduction of New Goods
- 3. Unmeasured Quality Change
- 4. It's an Average
- The GDP deflator versus the CPI
- Correcting Economic Variables for the Effects of Inflation
- Dollar figures from Different Times
- Indexation
- Real and Nominal Interest Rates
- Premium PowerPoint for Ch. 11 Measuring the Cost of Living
Chapter 12: Production and Growth
Economic Growth Around the World
Productivity: It's Role and Determinants
- Why Productivity is so important
- How Productivity is Determined?
- Physical Capital per worker
- Human Capital per worker
- Natural Resources per worker
- Technological Knowledge
Premium PowerPoint for Ch 12: Production and Growth
June 13, 2018 Chapter 13: Saving, Investment, and the Financial System
Chapter 13: Saving, Investment, and the Financial System
Financial Markets
- Stock Market
- Bond Market
- Financial Intermediaries
- Banks, Mutual Funds, Etc.
Saving and Investment in the National Income Accounts
Identities: Investment = private saving + public saving
The Market for Loanable Funds
3 Very Important Graphs:
- Policy 1: Saving Incentives
- Policy 2: Investment Incentives
- Policy 3: Government Budget Deficits and Surpluses
Crowding out and the Public Debt
PowerPoint for Chapter 13: Saving, Investment, and the Financial System
June 14, 2018 Exam 2, Chapters 10 - 13
Week 1
June 4, 2018 Chapter 1: Ten Principles of Economics
- The Syllabus, Outline, and a little about me
- Chapter 1: What are these 10 Principles of Economics
- How people make decisions
- How people interact
- How the Economy as a Whole Works
PowerPoint for Chapter 1: Ten Principles
Chapter 2: Thinking Like an Economist
The Scientific Method and the Role of Assumptions
The Circular Flow: The first model of Economics we will study
Model 2: The Production Possibilities Frontier (PPF)
Positive versus Normative Economics
Why Economists Disagree
PowerPoint for Chapter 2: Thinking Like An Economist
June 5, 2018 Chapter 4: The Market Forces of Supply and Demand
- Chapter 2: Thinking Like an Economist
- The Scientific Method and the Role of Assumptions
- The Circular Flow: The first model of Economics we will study
- Model 2: The Production Possibilities Frontier (PPF)
Positive versus Normative Economics
Why Economists Disagree
PowerPoint for Chapter 2: Thinking Like An Economist
Chapter 4: The Market Forces of Supply and Demand
What is a Market? A competitive Market?
Demand Side
- The price of the good, movement along the curve
- Shifts: P-P-P-INT
Supply Side
- The price of the good, movement along the curve
- Shifts: P-P-EST
Equilibrium: Qd=Qs
Surplus
Shortage
3 Steps to Changes in Equilibrium
Note what Ambiguous means
PowerPoint for Chapter 4: The Market Forces of Supply and Demand
June 6, 2018 Chapter 6: Supply, Demand, and Government Policy
- Chapter 4: The Market Forces of Supply and Demand
- What is a Market? A competitive Market?
- 3 Steps to Changes in Equilibrium
- Note what Ambiguous means
PowerPoint for Chapter 4: The Market Forces of Supply and Demand
Chapter 6: Supply, Demand, and Government Policy
Controls on Prices
- Price ceilings
- Price floors (minimum wage, for example)
Taxes
PowerPoint for Chapter 6: Supply, Demand, and Government Policy
Review for the exam
June 7, 2018 Exam 1, Chapters 1 - 4, and 6
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email: andrew at andrewparkes.com
Last Update: July 1, 2018
By Andrew L. H. Parkes, Ph. D.