Aggregate Expenditure and Equilibrium Output
October 9, 2013
Explaining the Boom and Bust Cycle of the Economy
John Maynard Keynes published The General Theory of
Employment, Interest and Money in 1936 with the goal of
explaining both ho
Demand and Supply
October 2, 2013
A problem using concepts from Chapter 2
Two countries, Tropical Island (TI) and Mountainous
Mainland (MM), produce only education and tourism.
Draw a PPF for Tropical Island. Label point A (where TI
Money Supply and the Fed
October 23, 2013
What is Money?
Medium of Exchange
A Store of Value
A Unit of Account
Commodity and Fiat Monies
Commodity monies have intrinsic value: gold coins, etc.
Fiat money is intrinsically worthless (US pa
Adding Government Expenditure and Taxes to
October 16, 2013
Aggregate Expenditure Model without the Government
For now, we will consider an economy without imports or
exports and without government spending.
Opportunity Cost, Production Possibilities Frontier,
and Benets of Trade - and a few concepts
fundamental to economic inquiry
September 25, 2013
Lambie-Hanson (Drexel University)
Chapter(s) 2 and 1
September 25, 2013
Introducing Macro and the GDP
October 4, 2013
What is Macroeconomics?
Macroeconomics is the study of the national economy as a
But, we can take many of the concepts and apply them
regionally as well - regional unemployment, for ex
October 24, 2013
Interest is the fee that borrowers pay lenders for the use of
How do we experience interest in everyday life?
Bonds are nancial products issued by borrowers - typically
Question 1: Is your product price elastic or price inelastic - what is your best guess about the
price elasticity? Sometimes you can find price elasticity for certain industries by googling it.
See if you can find an estimate of elasticity for the product
In this situation the real GDP is less than the nominal GDP because it is a
deflationary situation. It keeps decreasing over time.
8B. Percent change
1980 -1990- 137.60%
2000- 2010- 116.69%