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Course: NETWORKING NETW204, Spring 2011
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Vector Distance Routing Protocols Routing Protocols and Concepts Chapter 4 Modified by Tony Chen 02/01/2008 ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 1 Notes: Thanks! If you see any mistake on my PowerPoint slides or if you have any questions about the materials, please feel free to email me at chento@cod.edu. Tony Chen College of DuPage Cisco Networking Academy ITE...

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Vector Distance Routing Protocols Routing Protocols and Concepts Chapter 4 Modified by Tony Chen 02/01/2008 ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 1 Notes: Thanks! If you see any mistake on my PowerPoint slides or if you have any questions about the materials, please feel free to email me at chento@cod.edu. Tony Chen College of DuPage Cisco Networking Academy ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 2 Objectives Identify the characteristics of distance vector routing protocols. Describe the network discovery process of distance vector routing protocols using Routing Information Protocol (RIP). Describe the processes to maintain accurate routing tables used by distance vector routing protocols. Identify the conditions leading to a routing loop and explain the implications for router performance. Recognize that distance vector routing protocols are in use today ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 3 Distance Vector Routing Protocols Dynamic routing protocols help the network administrator overcome the timeconsuming and exacting process of configuring and maintaining static routes. Examples of Distance Vector routing protocols: Routing Information Protocol (RIP) RFC 1058. Hop count is used as the metric for path selection. If the hop count for a network is greater than 15, RIP cannot supply a route to that network. Routing updates are broadcast or multicast every 30 seconds, by default. Interior Gateway Routing Protocol (IGRP) proprietary protocol developed by Cisco. Bandwidth, delay, load and reliability are used to create a composite metric. Routing updates are broadcast every 90 seconds, by default. IGRP is the predecessor of EIGRP and is now obsolete. Enhanced Interior Gateway Routing Protocol (EIGRP) Cisco proprietary distance vector routing protocol. It can perform unequal cost load balancing. It uses Diffusing Update Algorithm (DUAL) to calculate the shortest path. There are no periodic updates as with RIP and IGRP. Routing updates are sent only when there is a change in the topology. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 4 Distance Vector Routing Protocols The Meaning of Distance Vector: A router using distance vector routing protocols knows 2 things: Distance to final destination The distance or how far it is to the destination network Vector, or direction, traffic should be directed The direction or interface in which packets should be forwarded For example, in the figure, R1 knows that the distance to reach network 172.16.3.0/24 is 1 hop and that the direction is out the interface S0/0/0 toward R2. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 5 Distance Vector Routing Protocols Characteristics of Distance Vector routing protocols: Periodic updates Periodic Updates sent at regular intervals (30 seconds for RIP). Even if the topology has not changed in several days, Neighbors The router is only aware of the network addresses of its own interfaces and the remote network addresses it can reach through its neighbors. It has no broader knowledge of the network topology Broadcast updates Broadcast Updates are sent to 255.255.255.255. Some distance vector routing protocols use multicast addresses instead of broadcast addresses. Entire routing table is included with routing update Entire Routing Table Updates are sent, with some exceptions to be discussed later, periodically to all neighbors. Neighbors receiving these updates must process the entire update to find pertinent information and discard the rest. Some distance vector routing protocols like EIGRP do not send periodic routing table updates. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 6 Distance Vector Routing Protocols Routing Protocol Algorithm: The algorithm is used to calculate the best paths and then send that information to the neighbors. Different routing protocols use different algorithms to install routes in the routing table, send updates to neighbors, and make path determination decisions. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 7 Distance Vector Routing Protocols Routing Protocol Characteristics Criteria used to compare routing protocols includes Time to convergence Time to convergence defines how quickly the routers in the network topology share routing information and reach a state of consistent knowledge. The faster the convergence, the more preferable the protocol. Scalability Scalability defines how large a network can become based on the routing protocol that is deployed. The larger the network is, the more scalable the routing protocol needs to be. Resource usage Resource usage includes the requirements of a routing protocol such as memory space, CPU utilization, and link bandwidth utilization. Higher resource requirements necessitate more powerful hardware to support the routing protocol operation Classless (Use of VLSM) or Classful Classless routing protocols include the subnet mask in the updates. This feature supports the use of Variable Length Subnet Masking (VLSM) and better route summarization. Implementation & maintenance ITE PC v4.0 Chapter 1 Implementation and maintenance describes the level of knowledge that is required for a network administrator to implement and maintain the network based on the routing protocol deployed. 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 8 Distance Vector Routing Protocols ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 9 Network Discovery Router initial start up (Cold Starts) Cold Starts When a router cold starts or powers up, it knows nothing about the network topology. It does not even know that there are devices on the other end of its links. The only information that a router has is from its own saved configuration file stored in NVRAM. -Initial network discovery Directly connected networks are initially placed in routing table ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 10 Network Discovery Initial Exchange Initial Exchange of Routing Information If a routing protocol is configured then Routers will exchange routing information Initially, these updates only include information about their directly connected networks. Routing updates received from other routers Router checks update for new information If there is new information: Metric is updated New information is stored in routing table After this first round of update exchanges, each router knows about the connected networks of their directly connected neighbors. However, did you notice that R1 does not yet know about 10.4.0.0 and that R3 does not yet know about 10.1.0.0? Full knowledge and a converged network will not take place until there is another exchange of routing information. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 11 Network Discovery Next Update of Routing Information Next Update At this point the routers have knowledge about their own directly connected networks and about the connected networks of their immediate neighbors. Continuing the journey toward convergence, the routers exchange the next round of periodic updates. Each router again checks the updates for new information. Routing updates received from other routers Router checks update for new information If there is new information: Metric is updated New information is stored in routing table ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 12 Network Discovery Distance vector routing protocols typically implement a technique known as split horizon. Split horizon prevents information from being sent out the same interface from which it was received. For example, R2 would not send an update out Serial 0/0/0 containing the network 10.1.0.0 because R2 learned about that network through Serial 0/0/0. ITE PC v4.0 Chapter 1 Split horizon 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 13 Network Discovery Exchange of Routing Information Router convergence is reached when Next Update All routing tables in the network contain the same network information, [Tony]: The above statement is trying to tell you, the routing tables contains the same network information, BUT, each router has it's own variation of the routing table. Routers continue to exchange routing information -If no new information is found then Convergence is reached ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 14 Network Discovery and convergence The amount of time it takes for a network to converge is directly proportional to the size of that network. Convergence must be reached before a network is considered completely operable Speed of achieving convergence consists of 2 interdependent categories How quickly the routers propagate a change in the topology in a routing update to its neighbors The speed of calculating best path routes using the new routing information collected 4 5 ITE PC v4.0 Chapter 1 For example: It takes five rounds of periodic update intervals before most of the branch routers in Regions 1, 2, and 3 learn about the new routes advertised by B2-R4. 3 2 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 15 Routing Table Maintenance Periodic Updates: RIPv1 & RIPv2 These are time intervals in which a router sends out its entire routing table. RIPv1: updates are sent every 30 seconds as a broadcast (255.255.255.255) whether or not there has been a topology change RIPv2: updates are sent every 30 seconds as a multicast (224.0.0.9) whether or not there has been a topology change ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 16 Routing Table Maintenance Periodic Updates: distance vector protocols employ periodic updates to exchange routing information with their neighbors and to maintain upto-date routing information in the routing table. Failure of a link Introduction of a new link Failure of a router Change of link parameters ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 17 Routing Table Maintenance RIP uses 4 timers Update timer interval is a route sends an update Invalid timer If an update has not been received after 180 seconds (the default), the route is marked as invalid by setting the metric to 16. The route is retained in the routing table until the flush timer expires. Holddown timer This timer stabilizes routing information and helps prevent routing loops during periods when the topology is converging on new information. By default, the holddown timer is set for 180 seconds. Flush timer By default, the flush timer is set for 240 seconds, which is 60 seconds longer than the invalid timer. When the flush timer expires, the route is removed from the routing table. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 18 Routing Table Maintenance EIGRP Unlike other distance vector routing protocols, EIGRP does not send periodic updates. Instead, EIGRP sends bounded updates about a route when a path changes or the metric for that route changes. EIGRP routing updates are Partial updates Updates sent only when there is a change in topology that influences routing information Triggered by topology changes Bounded Propagation of partial updates are automatically bounded so that only those routers that need the information are updated Non periodic Updates are not sent out on a regular basis. More details on how EIGRP operates will be presented in Chapter 9. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 19 Routing Table RIP Maintenance Triggered Updates Routing table update that is sent immediately to adjacent routers in response to a routing change The receiving routers, in turn, generate triggered updates that notify their neighbors of the change. Conditions in which triggered updates are sent Interface changes state Route becomes unreachable Route is placed in routing table ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 20 Routing Table Maintenance problems RIP Triggered Updates (problems) Using only triggered updates would be sufficient if there were a guarantee that the wave of updates would reach every appropriate router immediately. However, there are two problems with triggered updates: Packets containing the update message can be dropped or corrupted by some link in the network. The triggered updates do not happen instantaneously. It is possible that a router that has not yet received the triggered update will issue a regular update at just the wrong time, causing the bad route to be reinserted in a neighbor that had already received the triggered update. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 21 Triggered Extensions to RIP Problems and Prerequisites Prerequisites RIP must be enabled for this feature to function. This feature runs on a point-to-point, serial interface only Triggered extensions to IP RIP increase efficiency of RIP on point-topoint, serial interfaces. interface serial 0 ip rip triggered http://cisco.com/en/US/docs/ios/12_0t/12_0t1/feature/guide/trigrip.html ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 22 Random Jitter Routing Table Maintenance Synchronized updates A condition where multiple routers on multi access LAN segments transmit routing updates at the same time. Problems with synchronized updates -Bandwidth consumption -Packet collisions (with hubs and not with switches) Solution to problems with synchronized updates - Used of random variable called RIP_JITTER A good reference is : Routing TCP/IP (Jeff Doyle) page 193-196. Update timers : timer for periodic update (default 30s) - RIP_JITTER (random to prevent colision - 15% of the update timers) 2007 Cisco Systems, Inc. All rights reserved. Cisco Public ITE PC v4.0 Chapter 1 23 Random Jitter Routing Table Maintenance Figure 5.1. RIP adds a small random variable to the update timer at each reset to help avoid routing table synchronization. The RIP updates from Cisco routers vary from 25.5 to 30 seconds, as shown in the delta times of these updates. Routing TCP/IP, Volume I (CCIE Professional Development) ITE PC v4.0 Chapter 1 http://www.ubookcase.com/book/Cisco/Routing.TCP.IP.Volume.I.CCIE.Professional.D evelopment/source/1578700418/ch05lev1sec1.html#ch05fig1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 24 Routing Loops Routing loops are A condition in which a packet is continuously transmitted within a series of routers without ever reaching its destination. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 25 Routing Loops Routing loops may be caused by: -Incorrectly configured static routes -Incorrectly configured route redistribution -Slow convergence -Incorrectly configured discard routes Routing loops can create the following issues -Excess use of bandwidth -CPU resources may be strained -Network convergence is degraded -Routing updates may be lost or not processed in a timely manner ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 26 Routing Loops Routing loops can eliminate Defining a maximum metric to prevent count to infinity Holddown timers Split horizon Route poisoning or poison reverse Triggered updates Note: The IP protocol has its own mechanism to prevent the possibility of a packet traversing the network endlessly. IP has a Time-to-Live (TTL) field and its value is decremented by 1 at each router. If the TTL is zero, the router drops the packet. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 27 Preventing loops with Count Count to Infinity to Infinity It is a condition that exists when inaccurate routing updates increase the metric value to "infinity" for a network that is no longer reachable. This is a routing loop whereby packets bounce infinitely around a network. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 28 Preventing loops by Setting a maximum Setting a maximum Distance Vector routing protocols set a specified metric value to indicate infinity Once a router "counts to infinity" it marks the route as unreachable RIP defines infinity as 16 hops - an "unreachable" metric. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 29 Preventing loops with holddown timers Holddown timers are used to prevent regular update messages from inappropriately reinstating a route that may have gone bad. -Holddown timers allow a router to not accept any changes to a route for a specified period of time. - Do not appept the update when the route is flapping -Point of using holddown timers Allows routing updates to propagate through network with the most current information. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 30 Holddown timers work in the following way 1. 2. 3. A router receives an update from a neighbor indicating that a network that previously was accessible is now no longer accessible. The router marks the network as possibly down and starts the holddown timer. If an update with a better metric for that network is received from any neighboring router during the holddown period, the network is reinstated and the holddown timer is removed. If an update from any other neighbor is received during the holddown period with the same or worse metric for that network, that update is ignored. Thus, more time is allowed for the information about the change to be propagated. Routers still forward packets to destination networks that are marked as possibly down. This allows the router to overcome any issues associated with intermittent connectivity. If the destination network truly is unavailable and the packets are forwarded, black hole routing is created and lasts until the holddown timer expires. 4. 5. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 31 Preventing loops with holddown timers ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 32 Preventing loops with Split Horizon The Split Horizon Rule is used to prevent routing loops Split Horizon rule: A router should not advertise a network through the interface from which the update came. Because of split horizon, R1 also does not advertise the information about network 10.4.0.0 back to R2 ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 33 Preventing loops with Route Poisoning Split horizon with Route poisoning Route poisoning is used to mark the route as unreachable in a routing update that is sent to other routers. Unreachable is interpreted as a metric that is set to the maximum. For RIP, a poisoned route has a metric of 16. 16 16 ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 34 Preventing loops with poison reverse Split horizon with poison reverse The rule states that once a router learns of an unreachable route through an interface, advertise it as unreachable back through the same interface Poison reverse is a specific circumstance that overrides split horizon. It occurs to ensure that R3 is not susceptible to incorrect updates about network 10.4.0.0. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 35 Preventing loops with TTL IP & TTL Purpose of the TTL field The TTL field is found in an IP header and is used to prevent packets from endlessly traveling on a network How the TTL field works -TTL field contains a numeric value The numeric value is decreased by one by every router on the route to the destination. If numeric value reaches 0 then Packet is discarded. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 36 Preventing loops with TTL ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 37 Routing Protocols Today Factors used to determine whether to use RIP or EIGRP include -Network size -Compatibility between models of routers -Administrative knowledge ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 38 Routing Protocols Today RIP Features of RIP: -Supports split horizon & split horizon with poison reverse -Capable of load balancing -Easy to configure -Works in a multi vendor router environment ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 39 Routing Protocols Today RIP V2 Features of RIP: Includes the subnet mask in the routing updates, making it a classless routing protocol. Has authentication mechanism to secure routing table updates. Supports variable length subnet mask (VLSM). Uses multicast addresses instead of broadcast. Supports manual route summarization. ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 40 Routing Protocols Today EIGRP Features of EIGRP: -Triggered updates -EIGRP hello protocol used to establish neighbor adjacencies -Supports VLSM & route summarization -Use of topology table to maintain all routes -Classless distance vector routing protocol -Cisco proprietary protocol ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 41 Summary Characteristics of Distance Vector routing protocols Periodic updates RIP routing updates include the entire routing table Neighbors are defined as routers that share a link and are configured to use the same protocol The network discovery process for D.V. routing protocol Directly connected routes are placed in routing table 1st If a routing protocol is configured then Routers will exchange routing information Convergence is reached when all network routers have the same network information ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 42 Summary D.V. routing protocols maintains routing tables by RIP sending out periodic updates RIP using 4 different timers to ensure information is accurate and convergence is achieved in a timely manner EIGRP sending out triggered updates D.V. routing protocols may be prone to routing loops routing loops are a condition in which packets continuously traverse a network Mechanisms used to minimize routing loops include defining maximum hop count, holddown timers, split horizon, route poisoning and triggered updates ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 43 Summary Conditions that can lead to routing loops include Incorrectly configured static routes Incorrectly configured route redistribution Slow convergence Incorrectly configured discard routes How routing loops can impact network performance includes: Excess use of bandwidth CPU resources may be strained Network convergence is degraded Routing updates may be lost or not processed ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 44 Summary Routing Information Protocol (RIP) A distance vector protocol that has 2 versions RIPv1 a classful routing protocol RIPv2 - a classless routing protocol Enhanced Interior Gateway Routing Protocol (EIGRP) A distance vector routing protocols that has some features of link state routing protocols A Cisco proprietary routing protocol ITE PC v4.0 Chapter 1 2007 Cisco Systems, Inc. All rights reserved. Cisco Public 45
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EA1101/ET1000/NK1001 Grammar Editing 12 Text-Editing 1. 2. 3. There are TEN (10) errors in the following text. Identify the error in the numbered sentence, then write your correction in the numbered blank space on the right side of the text. After your co
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 Grammar Editing 13 Text-Editing 1. There are TEN (10) errors in the following text. 2. 3. Identify the error in the numbered sentence, then write your correction in the numbered blank space on the right side of the text. After your co
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 Grammar Editing 14 Text Editing 1. 2. 3. There are TEN (10) errors in the following text. The errors are found only in the numbered sentences, and only one error in each of them. Underline the error in the numbered sentence, then writ
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 Grammar Editing 15 1. 2. 3. There are TEN (10) errors in the following text. Identify the error in the numbered sentence, then write your correction in the numbered blank space on the right side of the text. After your correction, giv
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 Grammar Editing 16 Text-Editing 1. There are TEN (10) errors in the following text. 2. 3. Identify the error in the numbered sentence, then write your correction in the numbered blank space on the right side of the text. After the cor
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 Grammar Editing 17 Text Editing 1. 2. 3. There are TEN (10) errors in the following text. The errors are found only in the numbered sentences, and only one error in each of them. Underline the error in the numbered sentence, then writ
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 GRAMMAR EDITING 18 Text Editing 1. 2. There are TEN (10) errors in the following text. The errors are found only in the numbered sentences, and only one error in each of them. Underline the error in the numbered sentence, then write y
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 GRAMMAR EDITING 19 Text Editing 1. There are TEN (10) errors in the following text. You have to do the following: Underline the error in the numbered sentence, then write your correction in the numbered blank space on the right side o
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 Grammar Editing 20Text Editing 1. 2. There are TEN (10) errors in the following text. The errors are found only in the numbered sentences, and only one error in each of them. Underline the error in the numbered sentence, then write y
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001 Grammar Editing 21Name: _Text Editing 1. 2. There are TEN (10) errors in the following text. The errors are found only in the numbered sentences, and only one error in each of them. Underline the error in the numbered sentence, then
National University of Singapore - ENGLISH - EA1101
EA1101/ET1000/NK1001GRAMMAR EDITING 22 Text Editing 1. 2. There are Ten (10) errors in the following text. Identify and underline the error in the numbered sentence, and then write your correction in the numbered blank space on the right side of the text
National University of Singapore - ECON - EC1101
EC1101E INTRODUCTION TO ECONOMIC ANALYSISMacroeconomicsDr V. SeevaratnamE-mail Address: ecsvs@nus.edu.sg Consultation Hours: Announced on IVLE and other mutuallyconvenient times by appointment (the wonders of e-mail!) Introduction 2FAQ1. Lectures, s
National University of Singapore - ECON - EC1101
Lecture 1 Introduction and Key PrinciplesEC1101E Introduction to Economic Analysis1Lecture Outline 1. What is economics? 2. Concepts of scarcity and choice. 3. The market and the meaning of the invisible hand. 4. Positive economics versus normative ec
National University of Singapore - ECON - EC1101
CHAPTER 16Unemployment & InflationLecture Outline1. Examining unemployment a. How is unemployment defined and measured? b. Usefulness of official unemployment statistics and alternative measures of unemployment c. Three types of unemployment: cyclical,
National University of Singapore - ECON - EC1101
CHAPTER 17The Economy at Full EmploymentLecture Outline1a. Using production functions to describe the relationship between the level of output & the factors of production 1b. Understanding the slope of a production function & diminishing marginal retur
National University of Singapore - ECON - EC1101
CHAPTER 18Why Do Economies Grow?Lecture Outline1. Defining and measuring economic growth: growth rate of real GDP 2a. Comparing economic growth rates across the world 2b. Assessing the convergence of rich and poor countries 3. Capital deepening as a me
National University of Singapore - ECON - EC1101
Lecture 2 Supply and Demand Model, Elasticity and EfficiencyEC1101E Introduction to Economic AnalysisLecture Outline 1. Supply-Demand Model Movement along the demand curve versus shift of the demand curve Market effects of changes in demand and supply
National University of Singapore - ECON - EC1101
CHAPTER 19Aggregate Demand and Aggregate SupplyLecture Outline1. Sticky prices versus flexible prices and their macroeconomic consequences 2. Understanding aggregate demand a. What is the aggregate demand curve? b. Factors that shift the aggregate dema
National University of Singapore - ECON - EC1101
CHAPTER 20Fiscal PolicyLecture Outline1. The role of fiscal policy a. Impact of fiscal policy on aggregate demand b. Types of fiscal policy 2. The government budget and fiscal policy 3. The limits to stabilisation policy: lags and the art of forecastin
National University of Singapore - ECON - EC1101
Lecture 3 Consumer Choice TheoryEC1101E Introduction to Economic Analysis1Lecture Outline 1. Consumer choice theory 2. Concept of utility (total and marginal) and the law of diminishing marginal utility. 3. Difference between the old utility theory an
National University of Singapore - ECON - EC1101
CHAPTER 21The IncomeExpenditure ModelLecture Outline1. Developing a simple income-expenditure model to determine equilibrium output 2. Using a consumption function to describe consumption spending a. autonomous consumption and the marginal propensity t
National University of Singapore - ECON - EC1101
CHAPTER 22Investment and Financial IntermediationLecture Outline1. Definition of investment 2. Theories of investment spending 3. The use of present value to compare the payoffs of an investment over time a. How interest rates affect the calculation of
National University of Singapore - ECON - EC1101
CHAPTER 23Money and the Banking SystemLecture Outline1. Money a. Definition of money b. Three properties of money c. Measuring the money supply 2. Banks as financial intermediaries a. A bank's balance sheet: assets and liabilities b. Reserves 3. How ba
National University of Singapore - ECON - EC1101
Lecture 4 Production and Cost under Perfect CompetitionEC1101E Introduction to Economic Analysis1Lecture Outline 1. Cost concepts and time period of production/ 2. The law of diminishing returns and the product curves. 3. Short-run cost curves. 4. Lon
National University of Singapore - ECON - EC1101
CHAPTER 24Central Banks and Monetary PolicyLecture Outline1. The demand for money a. Motives for holding money b. Factors that affect the demand for money 2. How central banks can change the money supply a. open market operations b. changing reserve re