{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

MacroeconomicsIntro

MacroeconomicsIntro - 3 The rest of the world(international...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Macroeconomics 1. What is macroeconomics about? a. Unit of observation is a country b. Aggregation of all markets (AS/AD) i. Output (output growth) ii. Inflation iii. Unemployment (employment) iv. Interest rates (real interest rates) c. Distinguishing long run and short run (output path) i. Short-run fluctuations-business cycles ii. Long-run growth d. Macroeconomic policy i. John Maynard Keynes “Great Depression” 1. Pro-active fiscal and monetary policy 2. Controversies in macroeconomics a. Keynesian pro-active, role of federal government (“tax and spend”) b. Chicago school-let markets do their thing, intervention almost always does more harm than good c. Monetarists-LR trends controlled by “MG” i. What is the shape of the AS curve (LR)?
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3. The rest of the world (international economy) a. Keynesian model: exports and imports b. Balance of payments (financial flows) c. NBER.org i. “calls a recession” ii. business cycles 4. PPF a. Uses i. Economic growth-shift of the PPF 1. Potential/capacity argument ii. Output growth-change in actual production of point 1. Labor, land, technology, capital b. Market vs command i. Relative prices; no market determined prices c. Trade i. Trade changes a country’s relative prices and allows that country to consume beyond its PPFF ii. Gains from trade is a consumption argument iii. Trade allows a country to specialize/comparative advantage...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern