Macroeconomics

10/31/98


Click here to start


Table of Contents

Macroeconomics

INTRODUCTION

MACROECONOMIC ISSUES

SHORT-RUN VS LONG-RUN

CLASSICAL VS KEYNESIAN

HISTORICAL PERFORMANCE

Real GDP

GDP Deflator

CPI-U: All Items

U.S. Unemployment Rate 1948.1-1997.9

CH2: THE DATA OF MACROECONOMICS

SOME RULES FOR COMPUTING GDP

REAL VS NOMINAL GDP

COMPONENTS OF GDP

INVESTMENT GOODS

COMPONENTS OF GDP

GDP VS GNP

OTHER MEASURES OF INCOME

MEASURING THE COST OF LIVING

WHAT IS WRONG WITH CPI?

MEASURING JOBLESNESS

OKUN’S LAW

CH3. NATIONAL INCOME: PRODUCTION DISTRIBUTION AND ALOCATION

MARKETS

THE PRODUCTION OF GOODS AND SERVICES

DISTRIBUTION OF NATIONAL INCOME

PROFIT

CH3. NATIONAL INCOME ITS PRODUCTION AND DISTRIBUTION

PRODUCTION OF GOODS AND SERVICES

DISTRIBUTION OF NATIONAL INCOME AND PRODUCTION

PPT Slide

PPT Slide

THE DEMAND FOR GOODS AND SERVICES

PPT Slide

EQUIBRIUM IN THE GOODS MARKET

PPT Slide

PPT Slide

CH.5 UNEMPLOYMENT RATE

FRICTIONAL UNEMPLOYMENT

PUBLIC POLICY

REAL WAGE RIGIDITY AND WAIT UNEMPLOYMENT

MINIMUM WAGE

EFFICIENCY WAGE

VARIATION IN UNEMPLOYMEN RATE

CH6. MONEY AND INFLATION

HOW THE QUANTITY OF MONEY IS CONTROLLED

THE QUANTITY THEORY OF MONEY

THE MONEY DEMAND FUNCTION

MONEY PRICES AND INFLATION

SEINIORAGE

INFLATION AND INTEREST RATES

THE NOMINAL INTEREST RATES AND THE DEMAND FOR MONEY

THE COSTS OF INFLATION

CH8. INTRODUCTION TO ECONOMIC FLUCTUATIONS

THE EFFECT OF MONEY SUPPLY

AGGREGATE DEMAND

WHY THE AD CURVE SLOPES DOWNWARD

SHIFTS IN AGGREGATE DEMAND

LONG RUN

SHORT-RUN

Long Run Equilibrium

STABILIZATION POLICY

SHOCKS TO AD

VELOCITY AND THE 1980 RECESSION

...Volatility

...Velocity

Shocks to Aggregate Supply

EXAMPLES OF SUPPLY SHOCK

CH9.AGGREGATE DEMAND I

THE GOODS MARKET EQUILIBRIUM

C

Loanable Fund Interpretation

How Fiscal Policy Shifts the IS

MULTIPLIER

Kennedy-Keynes and 1964 Tax Cut

KENNEDY-KEYNES TAX CUT

SUPPLY SIDE ECONOMICS

IS-LM Model

PPT Slide

The Money Market and the LM Curve

The Demand for Real Balance

Money Market Equilibrium

LM Curve

The Quantity Equation Interpretation

The short Run Equilibrium

The Short Run Equilibrium

CH.10 AGGREGATE DEMAND II

The Effect of Change in tax

The IS and LM Model

IS-LM MODEL

The Great Depression

What Explains the Great Depression

THE GREAT DEPRESSION

….Great Depression

The Money Hypothesis

Problems with Money Hypothesis

PROBLEMS WITH MONEY HYPOTHESIS

The Money Hypothesis Again

…Money Hypothesis Again

Effect of Expected Changes in P

Effect of Deflation on r and Y

CH 7. Open Economy

Int. Flow of Capital Goods

Net Foreign Investment and Trade Balance

Saving and Investment in a Small Open Economy

PPT Slide

How Policies Influence Trade Balance

Twin Deficit

Fiscal Policy Abroad

A Shift of Investment Schedule

Exchange Rates

Real Exchange rate = e* P/P*

PPT Slide

Determinants of Real Exchange Rate

The real exchange is related to NX

How Policies Influence the Real Exchange Rates

Fiscal Policy Abroad (G­)

Shifts in Investment Demand

The Effect of Trade Policy

The Determinants of Nominal Exchange Rate

Special Case of Purchasing Power Parity

Purchasing Power Parity:

…...PPP

The quick action of these international arbitrage implies that net exports are highly sensitive to small movements in the real exchange rate. A small decrease in the price of domestic goods relative to foreign goods causes arbitrage to buy goods domestically and sell them abroad.

….PPP

Is PPP realistic

Large Open Economy

Large Open Economy

The Market for Foreign Exchange

S

Policies in Large Open Economy

Trade policies

CH 11. AGGREGATE DEMAND IN AN OPEN ECONOMY

A Graphical Presentation

PPT Slide

IS

Small Open Economy Under Floating Exchange Rate

Monetary Policy

The Rise of Dollar in 1979-1982

Trade Policy

Small Open Economy Under Fixed Exchange Rate

Fixed Exchange Rate

Fiscal Policy

Monetary Policy

Interest Rate Differential

Should Exchange Rates be Fixed or Floating?

Fixed Exchange Rate:

Author: Abdul Hamid Sukar

Email: abduls@cameron.edu

Home Page: www.cameron.edu\~abduls