econ - The differences between short run and long run...

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ECON 2333 Macroeconomic Principles, Spring 2008 Exam II Guide Chapter 8 Inflation and Prices Key concepts: Cause and consequences of inflation Consumer price index (CPI) Terminology Calculation: How do we calculate the real rates (of return or income change)? Given the components in a market basket and their prices over time, how do we calculate the CPI and the inflation rates? Chapter 9 GDP and the Business Cycle Key concepts: Gross domestic product (GDP) and the different defining approaches GDP deflator Business cycles Calculation: How do we derive GDP using the different approaches? How do we calculate the GDP deflator? Chapter 10 Aggregate Demand and Aggregate Supply-The Basic Model Key concepts: Aggregate demand, short-run aggregate supply, and long-run aggregate supply
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Unformatted text preview: The differences between short run and long run Short-run and long-run equilibrium and their implications Chapter 11 From Short-Run to Long-Run Equilibrium-The Model in Action Key concepts: The classic (long-run) model (key arguments, assumptions, and implications) The adjustment processes from the short-run equilibrium to the long-run equilibrium Terminology Chapter 12 The Role of Aggregate Demand in the Short Run Key concepts: The Keynesian (short-run) model (key arguments, assumptions, and implications) The adjustment processes from the short-run equilibrium to the long-run equilibrium Disposable income and marginal propensity to consume/save (MPC/MPS) Calculation: How do we calculate MPC and MPS?...
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