The World of Finance: Interest Rates and the Fixed Income Markets
Up until now we have examined the economic system by looking at aggregate output
employment and inflation barometers. But in a capitalist economy, the financial
superstructure that facilita
COURSE 180.101
MACROECONOMICS
EXAM #2
(Two Hours)
NAME_
NOVEMBER 4, 2014
TA*_
*Two extra points if you remember to write down the name of your TA
Section 1 (12 points)
1. Natsuki buys a newly issued Japanese 10-year government bond in 1998. Its coupon yie
Supply and Demand Analysis - An Introduction
Nicholas W. Papageorge
Johns Hopkins University
September 9, 2015
Introductions
Who am I?
+ Nicholas Papageorge.
+ Asst. Prof. in the Economics Department.
+ Undergrad at U. of Chicago, Ph.D. at Wash. U. in St.
GDP Measuring Output
and Income Part II
Alternative Measures
Real World Approximations
Reading: RJB for lecture 5
GDP: Statistical
Approximations
The Bureau of Economic Analysis (BEA)
provides both annual and quarterly estimates.
In August of 2015, BE
THE AGGREGATE EXPENDITURE
MODEL
A STYLIZED LOOK AT BUSINESS CYCLE
DYNAMICS
A Quick Review
We have motivation
Good citizens
Intelligent economic actors
We have measurements
GDP: C + I +G + NX
We need a model
what forces drive the overall economy?
What
Okuns Law and Labor Force
Participation
Relating Real GDP Growth to
changes in Unemployment
Okuns Law:
can we relate Y to U
A KEY input
Long Term Sustainable Growth
What is the USA LTSG?
We will spend next Wednesday investigating
LTSG
The simple answer:
The Johns Hopkins University
Fall 2008
180.302: Macroeconomic Theory Second Midterm
Suggested Solutions
Instructions: There are two parts to this exam. The rst part has 6 short questions, worth
10 points each. The second part has 2 longer, analytical ques
The Johns Hopkins University
Spring 2006
180.302: Macroeconomic Theory First Midterm
Suggested Solution
Instructions: There are two parts to this exam. The rst part has 5 short questions, worth 9 points each.
The second part has 3 longer, analytical quest
The Johns Hopkins University
Spring 2005
180.302: Macroeconomic Theory
Second Midterm Suggested Solutions
Instructions: There are two parts to this exam. The rst part consists of 6 short-answer questions,
worth 8 points each. The second part consist of 2
The Firm and the Macroeconomy
Exercise 2
_
Arefaine Yohannes
Fall 2, 2016
_
_
Name(s):
1.
a.
_Gao Shanyi_
_Lu Haoyue_
_Yang Haiyuan_
Click on the following link: http:/www.bls.gov/news.release/cpi.nr0.htm
Based on the CPI-U, what was the inflation rate fo
The Firm and the Macroeconomy
Home Work 3
(Not Graded)
_
Arefaine G Yohannes
Fall 2, 2016
_
1. Consider the following data (000):
Civilian non-institutional population
Civilian labor force
Unemployed
252,768
159,286
7,966
a. What is the labor participatio
The Firm and the Macroeconomy
Exercise 2
_
Arefaine Yohannes
Fall 2, 2016
_
Name(s):
_
_
_
_
_
_
1. Click on the following link: http:/www.bls.gov/news.release/cpi.nr0.htm
a. Based on the CPI-U, what was the inflation rate for September, 2016?
b. What was
THE OPEN ECONOMY
Not such thing as a closed economy, only closed economists
The National Accounts Again
Y=C+I+G+X-M
While set like this, C, I, and G refer to domestic consumption, and M refers
to foreign consumption we can express each of the expenditure
FROM THE EFFICIENT
MARKETS HYPOTHESIS TO
IRRATIONAL EXUBERANCE
THE EMH: EUGENE FAMA
An efficient capital market is a one that is
efficient in processing information. The prices of
securities observed at any point in time are based
on correct evaluation of
MONEY AND INFLATION
Inflation is always and everywhere a monetary phenomenon
Milton Friedman
THE MONETARY SYSTEM: WHAST IT IS AND HOW IT WORKS
THE RELATIONSHIP WITH INFLATION
The definition, functions, and types of money
how banks create money
what a c
THE FIRM AND THE
MACROECONOMY
WHY FIRMS SHOULD CARE?
The objectives of this Course
That you understand the interrelationship between
the firm and the government
That you understand the interrelationship between
the firm and the markets and the markets a
THE IS LM MODEL
The short-run and long run effects of shocks
CHAPTER 11
Aggregate Demand I
1
The IS curve
def: a graph of all combinations of r and Y that
result in goods market equilibrium
i.e. actual expenditure (output)
= planned expenditure
The equati
THE KEYNESIAN CROSS
The effect of fiscal policy on output:
Tax Cuts or Government spending?
Context
Chapter 10 introduced the model of aggregate demand and aggregate
supply.
Long run:
prices flexible
output determined by factors of production & techno
A Farewell to A l m s
A BRIEF
ECONOMIC
H I S T O R Y OF T H E
WORLD
Gregory Clark
PRINCETON
Princeton and
UNIVERSITY
Oxford
PRESS
Copyright 2007 by Princeton University Press
Published by Princeton University Press, 41 William Street, Princeton, New Jerse
AS.440.602 Macroeconomic Theory
Spring 2016
Dr. Andrew Gillen
[email protected]
Course Materials
Textbook (required): Macroeconomics, Stephen D. Williamson, fourth or fifth edition
Electronic materials that will be provided to you include portions of
Chapter 9
Reading guide for chapter 9 and the relevant mathematical appendix:
The most important things to get out of chapter 9 and the relevant mathematical
appendix:
o The intertemporal model
Assumptions
Lifetime Budget Constraint
o Optimization
Gra
Chapter 14 Notes
These notes are a replacement for chapter 14. I encourage you to read chapter
14 to gain additional insights, but you are not responsible for that material.
Up through now, weve essentially been learning macro through the most recently
de
Business Cycle Fluctuations
Theory of long term growth
1. AS
AD
That is, output is determined by the production capabilities.
2. No Frictions ( long term considerations)
Short Term Fluctuations
1. AD
AS
Y= C+ I+G+NX
In the short term output (AS) expands a
t
Bubbles
Japan
Bubbles and Economic Potential
February 11, 2012 4:17 pm
Krugman
The ongoing discussions of economic policy and principles since the Great Recession struck have, I have
to say, been a source of continuing revelation. Again and again one
Chapter SW 5 Notes
Reading guide for chapter SW 5:
The most important things to get out of chapter SW 5:
o General vs. Basic Solow Model
Effective Labor
o The General Solow Model
Mechanics
o Steady State and Transition
o Growth Accounting
o Comparative
Chapter 5 and Mathematical Appendix
Reading guide for chapter 5 and the relevant mathematical appendix:
The most important things to get out of chapter 5 and the relevant mathematical
appendix:
o Modeling
o Government
Government Budget Constraint
o Comp
Chapter 12 Notes
Reading guide for chapter 12:
The most important things to get out of chapter 12:
o Money
Functions of Money
Measuring Money
o Money, Interest Rates, and Inflation
o Money Market
Money Demand
Money Supply
Equilibrium
o The Monetary
Chapter 2
Reading guide for chapter 2:
The most important things to get out of chapter 2:
o Ways to Measure GDP
o Real vs. Nominal
o Price Index Issues
Bias
Chaining
Penn Effect
Things that are more important than they seem
o Weaknesses of GDP/What d
Economic Growth
Convergence
Saving rate - impact level but not balanced growth
Saving too much could reduce consumption in steady state
Growth of GDP per capita in balanced growth (steady state) is
equal to productivity growth
Population has no impact on
(
Efficiency wage
e(w)
Max profits implies maximizing e/w
The Shapiro Stiglitz Model
Workers
Receive wage w
can choose effort of e or 0
Utility
w-e if employed
0 if unemployed
b probability of losing job
q probability of being caught shirking (and losing