Midterm Review
Macroeconomics
March 25, 2016
1
Chapter 4
Measures of Money
Formula for calculating total money supply under fractional reserve banking
system
Formula for calculating total money supply using cr, rr and monetary base
Inferences of Money
Chapter 11: Section 1: Aggregate Expenditure Model
Dr. Amlan Datta
March 9, 2016
1
The Aggregate Expenditure Function
From National Income Accounting(for a closed economy)we have:
Y = AE = C + I + G
(1)
In the above equation, AE is Aggregate Real Expendit
Final Review
Macroeconomics
April 22, 2016
1
Chapter 11
1.1
Aggregate Expenditure Model
Components of Aggregate Expenditure
What is the key difference between Actual Aggregate Expenditure and
Keynesian Aggregate Expenditure
Numerical Problems based on
Chapter 5:Inflation
Dr. Amlan Datta
March 25, 2016
1
Inflation and Interest rates
Types of Interest Rates
Nominal Interest Rates [i]: Interest rate i not adjusted for inflation, .
Example: The interest rate quoted in the newspapers is a nominal interest
Chapter 4: Monetary System
Dr. Amlan Datta
February 17, 2016
Types of Money
Fiat Money:Money that has no intrinsic value is called Fiat Money, because it
is established as money by government decree, or fiat. Example: Currency: US$,
CA$
Commodity Money: C
Chapter 7:Unemployment and the Labor
Market
Dr. Amlan Datta
March 26, 2016
1
Natural rate of Unemployment
1.1
Concept of Natural rate of Unemployment
The average rate of unemployment around which the economy fluctuates is
known as natural rate of unemploy
Chapter 11: Section 2: IS-LM Model
March 25, 2016
1
1.1
Goods Market
The IS [Investment-Saving ] curve
Derivation of IS Curve from The Keynesian Aggregate Expenditure model
Figure 1
In figure 1 the IS curve is derived with the help of two diagrams: The to
SUPPLEMENT: Aggregate Demand Curve and
Special Cases of IS-LM slopes
Dr. Amlan Datta
April 6, 2016
1
Derivation of AD curve from IS-LM
In Fig 1 as the price level increases from P 1 to P 2 to P 3, the real money
supply falls causing the LM curve to shift
Chapter 8:Economic Growth, Solow Growth
Model
Dr. Amlan Datta
April 22, 2016
1
Why Growth Matters ?
Economic growth raises living standards and reduces poverty. Some Facts:
In Pakistan, 85% of people live on less than $2/day.
One-fourth of the poorest c