Money and Inflation4In this chapter, you will learn:The classical theory of inflationcauseseffectssocial costs“Classical” – assumes prices are flexible & markets clear Applies to the long run Inflatio
MACROECONOMICSMACROECONOMICSIn this chapter you will learn:aggregate billions– govt budget deficit 2 YOU TRY: Real Nominal GDPgood A 102Real GDP controls for inflation2007NOW YOU TRY: Answers2006
MACROECONOMICSMACROECONOMICSChapter 5: The Open EconomyPreliminariesoutputtrade balance (right scale)As in Chapter 3national saving does not depend on the interest raterrNext three experiments:country
Economic Growth II:Technology, Empirics, and Policy8In this chapter, you will learn:how to incorporate technological progress in the Solow modelabout policies to promote growthabout growth empirics:c
Introduction to Economic Fluctuations9In this chapter, you will learn:facts about the business cyclehow the short run differs from the long runan introduction to aggregate demandan introduction to agg
The Open Economy5In this chapter, you will learn:accounting identities for the open economythe small open economy modelwhat makes it “small”how the trade balance and exchange rate are determinedhow po
National Ie:Where ites From and Where it Goes3In this chapter, you will learn:what determines the economy’s total output/iehow the prices of the factors of production are determinedhow tot
Unemployment6In this chapter, you will learn:…about the natural rate of unemployment:what it meanswhat causes itunderstanding its behavior in the real worldNatural rate of unemploymentNatural rate of
Economic Growth I:Capital Accumulation and Population Growth7In this chapter, you will learn:the closed economy Solow model how a country’s standard of living depends on its saving and population gro
The Science of Macroeconomics1In this chapter, you will learn:about the issues macroeconomists studythe tools macroeconomists usesome important concepts in macroeconomic analysisImportant issues in ma
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