Macroeconomics (ECO 201)Online
Instructor: Albert Duncan, PhD.
September 12, 2015
1. Why do many economists believe that the market system is the most efficient economic
system for allocating resources?
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LANGUAGE AND CULTURE
LIN 100/ANT 115 COURSE SCHEDULE
Professor Sharon Avni
Please read this document very carefully because it gives you the information you need to know
about when assignments are due.
1. New units begin every Monday.
2. You mus
The quantity theory of money
A simple theory linking the inflation rate to the growth rate of the money supply
Basic concept: the rate at which money circulates
Definition: the number of times the average dollar bill changes hands in a given time
The Data of Macroeconomics
What are GDP, CPI, and Unemployment?
Gross Domestic Product (GDP): is the dollar value of all final goods and services
produced within an economy in a given period of time
Consumer Price index (CPI): it measures the level of pri
Borough of Manhattan Community College
City University of New York
Department of Social Sciences
Section: ECO 201
Semester: Spring 2013
Credits: 3 Hours
Day/Time: MW 7:20pm-8:35pm
Instructor: Lyla Ahsan
Email: [email protected]
The factors of production are the inputs used to produce goods
and services. The two most important factors of production are
capital and labor.
The available production technology determines how much output is produced from
given amounts of capita
Principle of Comparative Advantage
Demand, Supply, Demand and Supply Equilibrium and The
law of Demand and Supply
Exchange and opportunity Cost
A person has an absolute advantage at a particular task if he or she can perform the task
in fewer hours than t
What determines the demand for goods and services?
Y = C + I + G + NX
Where Y = total demand for domestic output (GDP)
C = consumption spending by households
I= investment spending by businesses and households
G= government purchases of go
Money and Inflation
Inflation rate = the percentage increase in the average level of prices
Price = amount of money required to buy a good
Definition and functions of Money
Money is the stock of assets that can be readily used to make transactions
To spend more without raising taxes or selling bonds, the govt can print money
The revenue raised from printing money is called seignioreage
The inflation tax: printing money to raise revenue causes inflation.
Inflation is like a tax on people
Definition: 50% per month
All the costs of moderate inflation described above become HUGE under hyperinflation
Money ceases to function as a store of value, and may not serve its other functions ( unit
of account, medium of exchange.)
How do economists think?
Economists use models to understand what goes on in the economy
Two important points about models:
Endogenous variables: they are those, which the model tries to explain
Exogenous variables: they are those variables that a model t
Economics: The study of how people make choices under scarcity and the results of these
choices for society.
The scarcity principle: people have unlimited wants and limited resources. Having more
of one good means having less of another.
It is a