Principles of Macroeconomics
United States Output (GDP)
(1930 to present)
GDP is Exponential
Log GDP is Linear
Growth and Instability
Real vs Nominal
Output per Person
The Financial Crisis of 2008
US and Japan
Opportunity Sets, Opportunity
Cost and Comparative
Types of Opportunity Sets
Budget Constraint Concepts
Budget and p
1/26/17 Notes Microeconomics:
Demand Slopes Down: Income effect, diminishing marginal utility, and substitution effect are 3
causes of this.
Market demand curve is individual demand curves added together.
-Only thing that makes quantity demanded t
Economics Basics-At the core of economics is how people make choices given limited resources.
-What are resources?
-Resources underlie all of production. (Foundation of all productive activity)
-Factors of production are resources.
Price = Marginal revenue = Average Revenue
-If price= average revenue at all points; you know that its perfect competition
-Profit maximization always occurs where marginal revenue = marginal cost
Short Run Decisions:
-What quantity o
1-10-17 EC201 Notes
-Economics at its core is about people and the choices they make in a world of scarce resources.
-Wants are unlimited, yet resources are not.
-Economics looks at the choices we make and how that affects the world around us. (How
Production Possibilities Frontier:
Increasing opportunity costs will show up as a curve shape.
-When increasing opportunity, graphs occur, we only need to be able to read the graph at a
-If a PPF is bowed out
Clicker Question: Idea that one is planting own trees for a business is an idea of:
Answer: Economies of scale
1. What are the characteristics of perfect competition?
2. What does the firms demand curve look like in perf
-Any price below the equilibrium, there is a shortage.
-Any price above the equilibrium, there is a surplus (excess supply).
There is excess production of tomatoes in the market; this implies that the
current price is above equilibrium pri
Clicker Question: When there is diminishing utility starts happening as a person consumes more
and more of a given good;
Answer: -Total utility will increase at a diminishing rate.
Utility Maximization: Process of obtaining the greatest level of overall s
An unemployed person is a person who does not have a job but is actively seeking one. There
are three types of unemployment. They are frictional, structural and cyclical. Frictional unem
Aggregate Demand and Supply
Macroeconomics is focused around three models that describe the world in different time
frames. These three models are the very long run, long, run and short run. The very long run
EC-440 writing assignment
Professor Oren Ziv
The TPP and inequality
The Trans-Pacific Partnership, the United States Agreement with 11 other
countries looks to racially increase international trade and economic cooperation
throughout the pacifi
TPP Effects on American Income Inequality
After 7 years of development and negotiation the United States white house is
now poised to enact the Trans-Pacific Partnership, a multi-nation free trade agreement
with 14 other countries in the Asia-Pacific regi
EC 440 Writing Assignment
Professor Oren Ziv
The TPP and wealth distribution
In recent political cycles, income distribution and the wealth gap between rich
and poor has become an increasingly pertinent issue to congressional and
Along straight line D curve slope constant but elasticity is not
Own price elasticity of D: response of Qd to price along existing D curve (holding
constant all other influences on buyers)
Elasticity increases as we move up to the left on the straight D
-Qualification: 1) fiscal policy affect Y* and PAE, supply/ de demand 2) not always flexible enough, employed
Real int Rate(rate return- Ann % inc purch power of asset
wisely to be useful for stabilization 3) may not be needed and could cause ha