ECON 105 Principles of Macroeconomics
Open-Economy Macroeconomics (Ch. 12)
Junjie Liu Econ 105
1
Topics Covered
International Flow of Goods
International Flow of Capital
The Equality of NX and NCO
Nominal Exchange Rate
Real Exchange Rate
Purchasing-
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6
Analytical Questions
AQI. [7hmarks] 'The following table shows the GDP and other important macroeconomic variables in
a ypothctical economy. The data are in millions ofdollars.
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1. Key Macroeconomic Variables
Output and Income
One of the most important ideas in economics is that the production of output generates
income.
Aggregating Output = National Income
Nominal national income: The value of total output produced in an economy
Econ 105
1. The Complexity of the Modern Economy
Economy is a system in which scarce resources are allocated among competing uses.
The Nature of Market Economies
Early economists noticed that the interaction of self-interested people creates a spontaneous
The Consumption Function
This is a mathematical function that relates desired consumption expenditures of all households
to several factors.
Q: What factors would affect your desired consumption?
A: a change in wealth, interest rates, expectation about th
The International Economy
Two important variables reflecting the importance of the global economy are the exchange rate
and net exports.
The Exchange Rate
Exchange rate: the dollars required to purchase one unit of foreign currency.
e.g. The US exchange r
ECON 105 Principles of Macroeconomics
Measuring the Cost of Living (Ch. 6)
Junjie Liu Econ 105
1
Topics Covered
Construction of CPI
Difference between CPI and GDP Deflator
Problems with CPI
Correcting Economic Variables for the Effects of Inflation
N
ECON 105 Principles of Macroeconomics
Interdependence and the Gains from Trade
(Ch. 3)
Junjie Liu Econ 105
1
Topics Covered
Gains from Specialization and Trade
Absolute Advantage
Comparative Advantage
Principle of Comparative Advantage
Applications
J
ECON 105 Principles of Macroeconomics
Ten Principles of Economics (Ch. 1)
Junjie Liu Econ 105
1
Topics Covered
Scarcity and Trade-Off
Opportunity Cost
Marginal Reasoning
Incentives
Market and Government
Junjie Liu Econ 105
2
A Scenario
Suppose one of
ECON 105 Principles of Macroeconomics
Measuring a Nations Income (Ch. 5)
Junjie Liu Econ 105
1
Topics Covered
Income-Expenditure Identity
GDP
Components of GDP
Nominal GDP and Real GDP
GDP Deflator
Problems with GDP as a Measure of Economic Well-Bei
i
Econ 105: Quiz #3 Name: Student #:
1. If Anne, a Canadian Citizen, buys a $60,000 BMW that was fully produced in Germany, does this
affect Canadian GDP? Show how this transaction would affect the appropriaW
componentsng Canadian GDP. w-
NO H «Ler
1. The Nature of Economic Growth
Benefits of Economic Growth
Rising average material living standards
Alleviation of Poverty
Many do not share incomes directly in the growth, but income is politically easier in a growing
economy, but not in a static eco
The Aggregate Expenditure Function
The aggregate expenditure (AE) function relates the level of desired aggregate expenditures to
the level of GDP.
express the AE function with C, I, G and NX.
AE (Y) = *Y
Actual National Income
The slope of the AE functio
FIC
Econ 105
Week 6
Name:
Spring 2014
Answer key
Date:
FIC ID:
Section:
NOTE: Show your work whenever you do computational analysis.
1. According to lectures chapter 21 and 22, determine True or False to the underlined
statements, with a brief explanation
Econ 260
Practice MCQ set
Chapter 4
1. Below is a demand schedule for Allan and Barry. Assuming that this demand schedule represents
their marginal willingness to pay for a public good, and the marginal cost of the good is $4.00, what
would be the efficie
1.5-1.6 Inverse Functions
1. Quote. Just as we have two eyes and two feet, duality is part of life.
Carlos Santana, a Mexican and American musician, 1947
2. Problem: Let f (x) = 3x + 1. For a given y R find x such that f (x) = y.
3. Example: Each student
Assignment 2
Precalculus
Math 100 - D100 (Spring 2016)
MATH 100 -Fraser International college
Quiz date: Wednesday, January 20, 2016
Complete this assignment by Tuesday in your homework journal. This will give you enough of time
to make sure you understan
1.3 Function Transformation and Graphs
1. Quote. After climbing a great hill, one only finds that there are many more hills to climb.
Nelson Mandela, South African anti-apartheid revolutionary, politician, and philanthropist,
19182013
2. Problem. If we kn
1.4 Composition of Functions
1. Quote. No one is an artist unless he carries his picture in his head before painting it, and is
sure of his method and composition.
Oscar-Claude Monet, a founder of French Impressionist painting, 1840 1926
2. Problem: If f
Welcome to Math 100
1. My responsibilities:
(a) To create conditions under which each of you will successfully complete Math 100 to the
best of your abilities. This includes:
i. Providing all necessary learning material
ii. Making all assessments reasonab
Assignment 3
Precalculus
Math 100 - D100 (Spring 2016)
Quiz date: Wednesday, January 27, 2016
Complete this assignment by Tuesday in your homework journal. This will give you enough of time
to make sure you understand the material before the quiz at the e
Econ 260
Practice MCQ set
Chapter 13
1. A market for pollution rights can be expected to:
a)
b)
c)
d)
eliminate all pollution.
produce a shortage of pollution.
encourage potential polluters to increase emissions.
provide potential polluters with a monetar
Econ 260
Practice MCQ set
Chapter 5
1. Suppose that for all levels of emissions for a pollutant the marginal damage is less than the
marginal abatement cost, then the socially optimal level of emissions is
a. as much as people want.
b. greater than 0 but
ILS101 Integrated Learning Skills
SEMESTER:
INSTRUCTOR:
EMAIL:
OFFICE HOURS:
Fall 2016
Andrew Newton
anewton@learning.fraseric.ca
TBA
PREREQUISITES
There are no prerequisites for this course.
OBJECTIVES/COURSE OVERVIEW
The Integrated Learning Skills Cours
Assignment 1
Precalculus
Math 100 - D100 (Spring 2016)
ASSIGNMENT 1: MATH100 FALL 2016
FRASER INTERNATIONAL COLLEGE
Quiz
date:
Wednesday,
January 13, 2016
Quiz date:
Next
class.
Complete this assignment by Tuesday in your homework journal. This will give