420+-+2.0+-+Classical+_Complete_ - Econ 420 Intermediate Theory Money Income Employment Prof Aguilar Econ420 | Prof Aguilar 1 Course Outline 1.

420+-+2.0+-+Classical+_Complete_ - Econ 420 Intermediate...

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Econ420 | Prof. Aguilar Econ 420 Intermediate Theory: Money, Income, & Employment Prof. Aguilar 1
Econ420 | Prof. Aguilar 1.0 – Measuring Macroeconomic Data 2.0 – Classical Theory 3.0 – Keynesian Theory Course Outline 4.0 – Macro Theory After Keynes 5.0 – Open Economy Macroeconomics 6.0 – Economic Policy 7.0 – Economic Growth  2
Econ420 | Prof. Aguilar 2.0 – Classical Theory Section 2 – Classical Theory 2.1 – Macro History 2.2 – AS 2.4 –Equilibrium By the end of this section you will be able to : explain the key tenets of Classical thought identify the theoretical predecessor to Classical thought 2.3 – AD 3
Econ420 | Prof. Aguilar Section 2 – Classical Theory 4 Mercantilism (1500-1600) Bullionism Government Intervention Classical Theory (1770’s -1930’s) Money is a Veil Free Markets Keynesian Theory (1930’s - 1970’s) Sticky Prices Government Intervention for Aggregate Demand
Econ420 | Prof. Aguilar By the end of this section you will be able to : evaluate the labor market. describe an economy’s productive capabilities. 2.0 – Classical Theory 2.2 – AS 2.4 –Equilibrium 2.3 – AD 2.1 – Macro History form the Aggregate Supply Curve Section 2 – Classical Theory 5
Econ420 | Prof. Aguilar Section 2 – Classical Theory 6 Production Function Output Labor Capital Cobb-Douglas Production Function K N F Y , 1 N AK Y Technology of Level : A Income Total of Share s Capital' :
Econ420 | Prof. Aguilar Section 2 – Classical Theory 7
Econ420 | Prof. Aguilar Section 2 – Classical Theory 8 Increasing Returns to Labor Constant Returns to Labor Diminishing Returns to Labor Negative Returns to Labor
Econ420 | Prof. Aguilar Section 2 – Classical Theory 9 Returns to Labor (Continuous) Returns to Labor (Discrete) Last where observe IRN NRN MPN DRN CRN IRN N MPN 0 0 0 NRN N DRN N CRN N IRN N 10 10 6 6 4 4 0
Econ420 | Prof. Aguilar By the end of this section you will be able to : evaluate the labor market. describe an economy’s productive capabilities. 2.0 – Classical Theory 2.2 – AS 2.4 –Equilibrium 2.3 – AD 2.1 – Macro History form the Aggregate Supply Curve Section 2 – Classical Theory 10
Econ420 | Prof. Aguilar Section 2 – Classical Theory 11 Labor Market P W N d N S N 1 P W 1 d N
Econ420 | Prof. Aguilar

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