Intermediate Macroeconomics
|
|
- Posy Veronica Patterson
- 5 years ago
- Views:
Transcription
1 Intermediate Macroeconomics ZHANG, Guoxiong
2 Class Schedule: Friday 12:55am - 15:40am 东下院 103, Minhang campus Office Hours: Friday 12:00am - 12:55am 东下院 103, Minhang campus Contacts: guoxiong@sjtu.edu.cn Class Website:
3 Lecture 1 I. The science of Macroeconomics what macroeconomists study? how economists think? II. The data of macroeconomics. Measuring the value of economic activity Measuring the cost of living Measuring jobless From economic statistics to economic models
4 What Macroeconomists Study Macroeconomics as a study of the economy as a whole attempts to answer questions such as - why countries differ a lot in income growth (China 7.8% vs Japan 1. 3%) - why countries differ a lot in inflation (Venezuela 56% vs US 1.6%) - why all countries experienced recession and depression (great depression and great recession) Macroeconomic issues affect everyone and therefore play central role in national political debate(tax debate between Obama and Romney) Macroeconomic issues are also central to world politics (Euro zone debt crisis, Renminbi re-evaluation, QE II & III) Macroeconomists collect data across time and across countries, and attempt to formulate general theories to explain them Macroeconomists make policy recommendations based on the current economic state (not the right the person to predict the future)
5 Figure 1 US Real GDP Long-term upward trend. Income more than doubled over last 30 years 2. Short-run disruptions in the trend: recessions.
6 Figure 2 US Unemployment Super high unemployment rate during the great depression ( Spain already reached this record in 2012) 2. Unemployment generally counter-move with economic growth (except for the three wars)
7 Figure 3 US Inflation Inflation has become much less volatile and has been reduced steadily after 1980 (after Paul Volcker) 2. Inflation usually co-move with economic growth (except for the stagflation in the 1970s)
8 How Economists Think Economists often study politically charged issues but they always try to be scientific objective (normative vs positive) Economists use mathematical(or statistical)models to understand the world - economic models illustrate the relationship between variables - the purpose of an economic model is to show how exogenous variables affect endogenous variables - economic models help us to dispense with irrelevant details and to focus on the underlying connections essentially, all models are wrong, but some are useful - George E. P. Box
9 Car Supply and Demand: a Toy Model explains the factors that determine the price of cars and the quantity sold. assumes the market is competitive: each buyer and seller is too small to affect the market price Variables: Q d = quantity of cars that buyers demand Q s = quantity that producers supply P = price of new cars Y = aggregate income P s = price of steel (an input)
10 A general functional notation shows only that the variables are related: Demand Function d Q = D( P, Y ) A specific functional form shows the precise quantitative relationship Examples: d 1) Q = D( P, Y ) = 60 10P + 2Y 2) = (, ) = 0.3 d Y Q D P Y P
11 Demand and Supply Function A general functional notation for the demand of cars d Q = D( P, Y ) A specific functional form shows the precise quantitative relationship Examples: 1) d Q = D( P, Y ) = 60 10P + 2Y 2) = (, ) = 0.3 d Y Q D P Y P A general function notation for the demand of cars supply equation: s Q = S ( P, P s )
12 Market Equilibrium P Price of cars S equilibrium price equilibrium quantity D Q Quantity of cars
13 The Effects of an Increase in Income P Price of cars S An increase in income increases the quantity of cars consumers demand at each price (demand shock) which increases the equilibrium price and quantity. P 2 P 1 Q 1 Q 2 D 1 D 2 Q Quantity of cars
14 The Effects of an Decrease in Steel Price An increase in P s reduces the quantity of cars producers supply at each price (supply shock) P S 2 Price of cars S 1 P 2 P 1 D which increases the equilibrium price and reduces the equilibrium quantity. Q 2 Q 1 Q Quantity of cars
15 Demand and Supply Function We will learn different models for studying different issues (e.g. unemployment, inflation, long-run growth). For each new model, you should keep track of its assumptions which of its variables are endogenous and which are exogenous the questions it can help us understand and those it cannot For macroeconomics, it is important to differentiate long run and short run ( flexible price vs sticky price, neoclassical vs new Keynesian, fresh-water-school vs salt water school)
16 The Data of Macroeconomics In this chapter, you will learn about how we define and measure: Gross Domestic Product (GDP) - measures the value of economic activities Consumer Price Index (CPI) - measures the cost of living Unemployment Rate - measures jobless
17 Gross Domestic Products (GDP) Two definitions: 1. Total expenditure on domestically-produced final goods and services 2. Total income earned by domestically-located factors of production total expenditure total income as in every economic transaction the expenditure of the buyer equal the income of the seller Income ($) Labor Househol ds Fi r ms Goods (br ead) Expenditure ($)
18 Measuring GDP Gross Domestic Product: The market value of all final goods and services produced within a country in a given period of time. market value: items without open market excluded (domestic work, illegal goods, etc.) final goods: intermediate goods excluded (e.g. hard drive) within a country: different from gross national product (GNP) given period of time: existing goods excluded (e.g. used cars, inventory)
19 Components of GDP GDP (Y ) is the sum of the following: Consumption (C) Investment (I) Government Purchases (G) Net Exports (NX) Y = C + I + G + NX This is called the national income accounts identity
20 Consumption Consumption: The value of all goods and services bought by household. durable goods e.g. cars, TV non-durable goods e.g. food, clothing services e.g. haircut, doctor visits US 2007 billion $ % of GDP Consumption Durables Non-durables Services
21 Investment Investment: Spending on goods and services for future use. business fixed investment spending on plant and equipment that firms will use to produce other goods and services residential fixed investment spending on new housing by households and landlords inventory investment the change in the value of all firms inventories US 2007 billion $ % of GDP Investment Business fixed Residential fixed Inventory investment -4 0
22 Government Spending Government Spending: goods and services bought by the government (transfer payments excluded) Federal Spending defense, social security, medicare & mediaid, interest payment for national debt State and Local Spending roads, schools, police service US 2007 billion $ % of GDP Government Spending Federal Spending Defense Non-defense State and Local Spending
23 Net Exports Net Exports =Exports - Imports (NX = EX - IM)
24 GDP vs GNP Gross National Product (GNP): total income earned by the nation s factors of production, regardless of where they are located Gross Domestic Product (GDP): total income earned by domestically-located factors of production, regardless of nationality GNP GDP = (factor payments from abroad) (factor payments to abroad) - labor payments from abroad (Philippine) - capital payments from abroad(japan)
25 Cross Country Comparison of GNP/GDP GNP/GDP China USA Singapore Kuwait Chile How can we explain why these countries have difference patterns on GNP/GDP?
26 Real vs Nominal GDP Real GDP: measured using a constant price (usually the price in the selected base year) Nominal GDP: measured using current year price GDP deflator = Nominal GDP/Real GDP - used to measure change of the overall price for domestically and newly produced goods and services
27 Exercise Republic of Antai produces three major goods, Bachelors, MBAs, and Ph.D.s, every year. The production and prices of these three goods in 2007, 2008, and 2009 are as follows: Bachelors MBAs Ph.D.s Quantity Price Quantity Price Quantity Price , , , , , , , , , Find Nominal GDP and Real GDP (base year 2007) for each year. 2. Calculate the annual growth in Nominal and Real GDP. 3. Find the GDP deflators of Antai Republic over years.
28 Working with Percentage Change USEFUL TRICK #1 For any variables X and Y, the percentage change in (X Y ) = the percentage change in X + the percentage change in Y USEFUL TRICK #2 For any variables X and Y, the percentage change in (X /Y ) = the percentage change in X - the percentage change in Y How to prove? Hint: dln x dx x = (percentage change) and ln(xy) = lnx+ lny ln(x/ Y) = lnx lny
29 Consumer Price Index (CPI) CPI : The price of a basket of goods relative to the price of the same basket in some base year. How is CPI determined: 1. Survey consumers to determine composition of the typical consumer s basket of goods. (survey once in a couple of years, most recent survey for the US is 2009 and 2010) 2. Every month, collect data on prices of all items in the basket; compute cost of basket 3. CPI in any month equals Cost of basket in that month 100 Cost of basket in base period
30 Both CPI and GDP deflator are measures of overall price level. But they are NOT identical CPI vs. GDP deflator CPI GDP Deflator Usually published monthly Goods and services purchased by consumers. Both domestic and imported goods and services. Both newly produced and previously produced goods and services. The basket of goods and services is (relatively) fixed Usually published quarterly or annually Goods and services purchased by consumers, firms, and government Only domestically produced goods and services. Only newly produced goods and services. The basket of goods and services changes every year.
31 CPI vs GDP Deflator for the US Percentage change CPI GDP deflator Year
32 Categories of the Population Entire Population Adult Population Labor Force Employed : work as a paid employee, work in their own business, work in a family member s business(unpaid), temporary absent from a job(vacation, illness) Unemployed: not employed but available for work, have tried to find a job in the last four weeks (including laid off workers that waiting for a recall) Unemployed Labor Force = Employed + Unemployed
33 Categories of the Population, Cont d Number unemployed Unemployment rate = 100% Labor force US Population Composition in 2008 Labor force Labor force participation rate = 100% Adult population Discouraged worker: wants a job but has given up looking for, NOT included in the labor force.
34 Exercise Suppose the population increases by 1% the labor force increases by 3% the number of unemployed persons increases by 2% Compute the percentage changes in the labor force participation rate and the unemployment rate: Hints: use the two tricks that can be used to work with percentage change.
35 Exercise Percentage change in real GDP Okun s Law : a one-percent decrease in unemployment is associated with two percentage points of additional growth in real GDP Percentage change in unemployment rate
Topic 2: Macroeconomic Data. (chapter 2) revised 9/15/09. CHAPTER 2 The Data of Macroeconomics slide 0
Topic 2: Macroeconomic Data (chapter 2) revised 9/15/09 CHAPTER 2 The Data of Macroeconomics slide 0 Learning objectives In this chapter, you will learn about how we define and measure: Gross Domestic
More informationMacroeconomic Data. Two definitions: In this chapter, you will learn about how we define and measure: Gross Domestic Product
Topic 2: Macroeconomic Data (chapter 2) revised 9/15/09 CHAPTER 2 The Data of Macroeconomics slide 0 Learning objectives In this chapter, you will learn about how we define and measure: Gross Domestic
More informationmacro macroeconomics The Data of Macroeconomics N. Gregory Mankiw CHAPTER TWO 6 th edition
macro CHAPTER TWO The Data of Macroeconomics macroeconomics 6 th edition N. Gregory Mankiw Learning objectives In this chapter, you will learn about: Gross Domestic Product (GDP) the Consumer Price Index
More informationLearning objectives. Gross Domestic Product
Learning objectives In this chapter, you will learn about: Gross Domestic Product (GDP) the Consumer Price Index (CPI) the Unemployment Rate The Data of Macroeconomics slide 1 Gross Domestic Product Two
More informationThe Science of Macroeconomics
1 The Science of Macroeconomics Inflation CHAPTER 5 Modified by Ming Yi 2016 Worth Publishers, all rights reserved 0 IN THIS CHAPTER, YOU WILL LEARN: About the issues macroeconomists study About the tools
More informationOndřej Krčál Department of Economics
Macroeconomics II Ondřej Krčál Department of Economics Office 611 Consultation hours: Tuesday 16:30 18:00 E-mail: krcalo@mail.muni.cz slide 0 Literature MANKIW, G. (2010): Macroeconomics. 7th edition.
More information8/23/2018. Where You Are! Course Webpage. Who am I? Dr. John Neri Office: Morrill Hall, Room 1106D, M and W 10:30am to 11:30am
Where You Are! Economics 305 Macroeconomic Theory M, W, F from 12:00pm to 12:50pm The Friday class is primarily graded quizzes and 3 midterm exams see the syllabus. Text: Gregory Mankiw: Macroeconomics,
More informationmacroeconomics The Data of Macroeconomics N. Gregory Mankiw CHAPTER TWO PowerPoint Slides by Ron Cronovich fifth edition
CHAPTER TWO The Data of Macroeconomics macroeconomics fifth edition N. Gregory Mankiw PowerPoint Slides by Ron Cronovich 2002 Worth Publishers, all rights reserved Learning objectives In this chapter,
More informationChapter 2 The Data of Macroeconomics
Chapter 2 The Data of Macroeconomics slide 0 Learning Objectives In this chapter, you will learn about: Gross Domestic Product (GDP) the Consumer Price Index (CPI) the Unemployment Rate slide 1 GROSS DOMESTIC
More informationECON 3010 Intermediate Macroeconomics. Chapter 2 The Data of Macroeconomics
ECON 3010 Intermediate Macroeconomics Chapter 2 The Data of Macroeconomics IN THIS CHAPTER, YOU WILL LEARN: the meaning and measurement of the most important macroeconomic statistics: gross domestic product
More informationPrinciples of Macroeconomics
Principles of Macroeconomics Academic Program: MSc in Banking and Finance Semester: Spring 2012/13 Instructor: Dr. Nikolaos I. Papanikolaou Office: Luxembourg School of Finance, KB2-E02-21 Phone: (00352)
More informationChapter 2: The Data of Macroeconomics*
Chapter 2: The Data of Macroeconomics 1/40 *Slides based on Ron Cronovich's slides, adjusted by Marcel Bluhm for lecture in Macroeconomics at the Wang Yanan Institute for Studies in Economics at Xiamen
More informationChapter 1: The Science of Macroeconomics*
Chapter 1: The Science of Macroeconomics* MACROECONOMICS Ninth Edition N. Gregory Mankiw * Slides based on Ron Cronovich's slides, adjusted for course in Macroeconomics Chapter 1: The Science of Macroeconomics
More informationCh 2. National Income Accounting ECO 402
Ch 2. National Income Accounting ECO 402 Key Words The circular flow Three approaches to measuring national income Production Income Expenditure Value added Final goods and intermediate goods Gross domestic
More informationMACROECONOMICS. The Data of Macroeconomics MANKIW. In this chapter, you will learn. Gross Domestic Product: Expenditure and Income.
C H A P T E R 2 The Data of Macroeconomics MACROECONOMICS N. GREGORY MANKIW 2008 Worth Publishers, all rights reserved SIXTH EDITION PowerPoint Slides by Ron Cronovich In this chapter, you will learn the
More informationMacroeconomic Analysis Econ 6022 Level I
1 / 37 Macroeconomic Analysis Econ 6022 Level I Lecture 2 Fall, 2011 2 / 37 Overview Let s start our tour in macroeconomics by introducing a few building blocks, which will be used repeatedly later on.
More informationECF2331 Final Revision
Table of Contents Week 1 Introduction to Macroeconomics... 5 What Macroeconomics is about... 5 Macroeconomics 5 Issues addressed by macroeconomists 5 What Macroeconomists Do... 5 Macro Research 5 Develop
More informationThe Data of Macroeconomics
C H A P T E R 2 MACROECONOMICS SIXTH EDITION N. GREGORY MANKIW PowerPoint Slides by Ron Cronovich 2008 Worth Publishers, all rights reserved In this chapter, you will learn the meaning and measurement
More informationChapter 2: The Data of Macroeconomics
Chapter 2: The Data of Macroeconomics 0 IN THIS CHAPTER, YOU WILL LEARN: the meaning and measurement of the most important macroeconomic statistics:! gross domestic product (GDP)! the consumer price index
More informationWhat is Macroeconomics? Data. Macroeconomics II. Lecture 1: Introduction to Macroeconomics
Lecture 1: Introduction to Macroeconomics What is macroeconomics? What do we study? How do we study it? Macroeconomics: studies the whole economy main variables: real, inflation, unemployment usually dynamic
More informationGross Domestic Product. National Income Determination. Topic 9: 10/7/2016
The Economy s Income and Expenditure Topic 9: National Income Determination When judging whether the economy is doing well or poorly, it is natural to look at the total income that everyone in the economy
More informationMacroeconomics, 7e (Blanchard) Chapter 2: A Tour of the Book. 2.1 Aggregate Output.
Macroeconomics, 7e (Blanchard) Chapter 2: A Tour of the Book 2.1 Aggregate Output. 1) Fill in the blank for the following: GDP is the value of all produced in a given period. A) final and intermediate
More informationWe use GDP to compare different economies or to track the same economy over time.
Lecture Notes ECON 1A: Principles of Macroeconomics Chapter 5 - Introduction to Macroeconomics Introduction Macroeconomics looks at the big picture: Demand for: Average price of: Consumption by: Investment
More informationEconomics. The last two weeks...
Economics The last two weeks... Final Exam (Thursday, December 14) Practice tests and review materials on Wednesday Extra Credit Stock Project (due on Thursday, December 14) Today: Measuring Economic Performance
More informationMACROECONOMICS. The Science of Macroeconomics. N. Gregory Mankiw. PowerPoint Slides by Ron Cronovich. Modified for EC 204 by Bob Murphy
1 MACROECONOMICS N. Gregory Mankiw Modified for EC 204 by Bob Murphy PowerPoint Slides by Ron Cronovich 2013 Worth Publishers, all rights reserved IN THIS CHAPTER, YOU WILL LEARN:! about the issues macroeconomists
More informationPart V: Introduction to Macroeconomics 19. The Wealth of Nations: Defining and
Part V: Introduction to s 19. 20. Aggregate Incomes 1 / 56 Chapter 19 Defining and 2017.8.9. 2 / 56 1 2 3 4 3 / 56 Chapter 19 Q: In the United States, what is the total market value of annual economic
More information8 THE DATA OF MACROECONOMICS
8 THE DATA OF MACROECONOMICS Measuring a Nation s Income 23 Measuring a Nation s Income Microeconomics Microeconomics is the study of how individual households and firms make decisions and how they interact
More informationChapter 1: The Science of Macroeconomics*
Chapter 1: The Science of Macroeconomics* MACROECONOMICS Seventh Edition N. Gregory Mankiw * Slides based on Ron Cronovich's slides, adjusted for course in Macroeconomics Chapter 1: The Science of Macroeconomics
More informationExamination Period 3: 2016/17
Examination Period 3: 2016/17 ECN201217N Module Title Level Time Allowed Intermediate Macroeconomics Five Two hours Instructions to students: Enter your student number not your name on all answer books.
More informationECO 209Y MACROECONOMIC THEORY AND POLICY LECTURE 2: NATIONAL INCOME ACCOUNTING
ECO 209Y MACROECONOMIC THEORY AND POLICY LECTURE 2: NATIONAL INCOME ACCOUNTING Gustavo Indart Slide1 GROSS DOMESTIC PRODUCT Gross Domestic Product (GDP) is the value of all final goods and services produced
More informationEC201 Intermediate Macroeconomics Problem Set 1 Solution
EC201 Intermediate Macroeconomics 2009/2010 EC201 Intermediate Macroeconomics Problem Set 1 Solution 1) Given the difference between Gross Domestic Product and Gross National Product for a given economy:
More informationLecture 22. Aggregate demand and aggregate supply
Lecture 22 Aggregate demand and aggregate supply By the end of this lecture, you should understand: three key facts about short-run economic fluctuations how the economy in the short run differs from the
More informationECON 3010 Intermediate Macroeconomics Solutions to the Final Exam
ECON 3010 Intermediate Macroeconomics Solutions to the Final Exam Multiple Choice Questions. (60 points; 2 pts each) #1. Which of the following is a stock variable? a) wealth b) consumption c) investment
More informationKeynesian Matters Source:
Money and Banking Lecture IV: The Macroeconomic E ects of Monetary Policy: IS-LM Model Guoxiong ZHANG, Ph.D. Shanghai Jiao Tong University, Antai November 1st, 2016 Keynesian Matters Source: http://letterstomycountry.tumblr.com
More informationEconomics Unit Four. Macroeconomics
Economics Unit Four Macroeconomics Macroeconomics Macroeconomics is the study of the whole economy together the aggregated spending, saving, and investing decisions of all consumers and businesses describes
More informationMacroeconomic Theory and Policy
ECO 209Y Macroeconomic Theory and Policy Lecture 2: National Income Accounting Gustavo Indart Slide1 Gross Domestic Product Gross Domestic Product (GDP) is the value of all final goods and services produced
More informationLecture 1: 10/07/2012
Ljubljana Summer school, July 2012 Macroeconomics Professor: Lorenzo Burlon Exercise List 1 Lecture 1: 10/07/2012 1. Decide whether the following statements are true of false. (a) We can say that macroeconomics
More informationAggregate Demand and Aggregate Supply
C H A P T E R 33 Aggregate Demand and Aggregate Supply Economics P R I N C I P L E S O F N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich 2009 South-Western, a part of Cengage Learning, all
More informationEXPENDITURE APPROACH: The expenditures on all final goods and services made by all sectors of the economy are added to calculate GDP. Expenditures are
Chapter 1 MEASURING GDP AND PRICE LEVEL MEASURING EONOMIC ACTIVITY Macroeconomics studies the aggregate (or total) concept of economic activity. Its focus is on the aggregate output, the aggregate income,
More informationEconomics. Economic Growth Session 1
Economics Economic Growth Session 1 National Association of Credit Management Graduate School of Credit and Financial Management American University Washington, DC June 23, 2018 1 Business Cycles Stocks
More informationMeasuring a Nation s Production and Income
Chapter Summary 5 Measuring a Nation s Production and Income In this chapter, we learned how economists and government statisticians measure the income and production for an entire country and what those
More informationEC and MIDTERM EXAM I. March 26, 2015
EC102.03 and 102.05 Spring 2015 Instructions: MIDTERM EXAM I March 26, 2015 NAME: ID #: You have 80 minutes to complete the exam. There will be no extensions. The exam consists of 40 multiple choice questions.
More information1. The economic statistic used to measure the level of prices is the: A) GDP. B) CPI. C) GNP. D) real GDP.
1. The economic statistic used to measure the level of prices is the: A) GDP. B) CPI. C) GNP. D) real GDP. 2. The statistic used by economists to measure the value of economic output is the: A) CPI. B)
More informationFETP/MPP8/Macroeconomics/Riedel. General Equilibrium in the Short Run II The IS-LM model
FETP/MPP8/Macroeconomics/iedel General Equilibrium in the Short un II The -LM model The -LM Model Like the AA-DD model, the -LM model is a general equilibrium model, which derives the conditions for simultaneous
More informationECON 3010 Intermediate Macroeconomics Final Exam
ECON 3010 Intermediate Macroeconomics Final Exam Multiple Choice Questions. (60 points; 3 pts each) #1. An economy s equals its. a. consumption; income b. consumption; expenditure on goods and services
More informationHomework Assignment #2, part 1 ECO 3203, Fall According to classical macroeconomic theory, money supply shocks are neutral.
Homework Assignment #2, part 1 ECO 3203, Fall 2017 Due: Friday, October 27 th at the beginning of class. 1. According to classical macroeconomic theory, money supply shocks are neutral. a. Explain what
More informationECON 3010 Intermediate Macroeconomics Final Exam
ECON 3010 Intermediate Macroeconomics Final Exam Multiple Choice Questions. (60 points; 2 pts each) #1. Which of the following is a stock variable? a) wealth b) consumption c) investment d) income #2.
More informationUnit 3: Aggregate Demand and Supply and Fiscal Policy
Unit 3: Aggregate Demand and Supply and Fiscal Policy 1 Aggregate Demand 2 What is Aggregate Demand? Aggregate means added all together. When we use aggregates we combine all prices and all quantities.
More informationECON 120 -ESSENTIALS OF ECONOMICS
Name ECON 120 -ESSENTIALS OF ECONOMICS CH 21 Measuring National Inome MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The total market value of
More informationLecture 1 Endogenous variables: Exogenous variables: Pizza example:
Lecture 1 Behavior of the whole is greater than the sum of individual actions and market outcomes Paradox of thrift: expectations of possible hardship in economy by families/businesses will cause them
More informationECON 3010 Intermediate Macroeconomics Solutions to the Final Exam
ECON 3010 Intermediate Macroeconomics Solutions to the Final Exam Multiple Choice Questions. (60 points; 3 pts each) #1. How does the distinction between flexible and sticky prices impact the study of
More informationUnit 3: Aggregate Demand and Supply and Fiscal Policy
Unit 3: Aggregate Demand and Supply and Fiscal Policy 1 Demand and Supply Review 1. Define Demand and the Law of Demand. 2. Identify the three concepts that explain why demand is downward sloping. 3. Identify
More informationFull file at
MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question 1) Gross domestic product is defined as 1) A) the total market value of the final goods and services
More information9. ISLM model. Introduction to Economic Fluctuations CHAPTER 9. slide 0
9. ISLM model slide 0 In this lecture, you will learn an introduction to business cycle and aggregate demand the IS curve, and its relation to the Keynesian cross the loanable funds model the LM curve,
More informationECON 3010 Intermediate Macroeconomics Final Exam
ECON 3010 Intermediate Macroeconomics Final Exam Multiple Choice Questions. (60 points; 3 pts each) #1. How does the distinction between flexible and sticky prices impact the study of macroeconomics? a.
More informationProfessor Christina Romer. LECTURE 15 MEASUREMENT AND BEHAVIOR OF REAL GDP March 8, 2018
Economics 2 Spring 2018 Professor Christina Romer Professor David Romer LECTURE 15 MEASUREMENT AND BEHAVIOR OF REAL GDP March 8, 2018 I. MACROECONOMICS VERSUS MICROECONOMICS II. REAL GDP A. Definition
More informationFull file at
ADDITIONAL QUESTIONS Problems and/or Essay Questions: CHAPTER 2: MEASUREMENT OF MACROECONOMIC VARIABLES 1. What impact do you think that the movement of women from working in the household to working in
More information01 Measuring a Nation s Income Econ 111
01 Measuring a Nation s Income Econ 111 Measuring a Nation s Income (Chapter 10) Macroeconomics is the study of the economy as a whole. Its goal is to explain the economic changes that affect many households,
More informationfile:///c:/users/moha/desktop/mac8e/new folder (2)/CourseCompas... Creation Settings
1 of 24 12/8/2012 11:32 م COURSES > BA121 > CONTROL PANEL > POOL MANAGER > POOL CANVAS P Add, modify, and remove questions. Select a question type from the Add drop-down list and click Go to add questions.
More informationMeasuring a Nation s Income
Measuring a Nation s Income Microeconomics is the study of how individual households and firms make decisions and how they interact with one another in markets. Macroeconomics is the study of the economy
More informationECON 3010 Intermediate Macroeconomics Final Exam
ECON 3010 Intermediate Macroeconomics Final Exam Multiple Choice Questions. (60 points; 3 pts each) 1. The returns to scale in the production function YY = KK 0.5 LL 0.5 are: A) decreasing. B) constant.
More informationSession 8. Business Cycles in a Closed Economy.
Session 8. Business Cycles in a Closed Economy. Building a Model of Aggregate Demand Money Market: The LM Curve Goods Market: The IS Curve A Graphical Representation of the Equilibrium: The IS/LM Model
More informationCHAPTER 2 Measurement
CHAPTER 2 Measurement KEY IDEAS IN THIS CHAPTER 1. Measurements of key macroeconomic variables such as gross domestic product (GDP), the price level, inflation, unemployment, and so on motivate macroeconomists
More informationIntroduction. Over the long run, real GDP grows about 3% per year on average.
Introduction Over the long run, real GDP grows about 3% per year on average. In the short run, GDP fluctuates around its trend. Recessions: periods of falling real incomes and rising unemployment Depressions:
More informationChapter 2 The Data of Macroeconomics
Chapter 2 The Data of Macroeconomics Zhengyu Cai Ph.D. Institute of Development Southwestern University of Finance and Economics All rights reserved http://www.escience.cn/people/zhengyucai/index.html
More informationCHAPTER 2: MEASUREMENT OF MACROECONOMIC VARIABLES
Additional Questions Problems and/or essay questions: CHAPTER 2: MEASUREMENT OF MACROECONOMIC VARIABLES 1. What impact do you think that the movement of women from working in the household to working in
More informationRecall from Econ 200:
Chapter 2: The Data of Macroeconomics Recall from Econ 200: Macroeconomics is the study of the economy a whole, including growth in incomes, changes in price, and the rate of unemployment. Macroeconomists
More informationProfessor Christina Romer. LECTURE 15 MACROECONOMIC VARIABLES AND ISSUES March 9, 2017
Economics 2 Spring 2017 Professor Christina Romer Professor David Romer LECTURE 15 MACROECONOMIC VARIABLES AND ISSUES March 9, 2017 I. MACROECONOMICS VERSUS MICROECONOMICS II. REAL GDP A. Definition B.
More informationChapter 11 Macroeconomic Issues: Economic Growth and the Business Cycle
Chapter 11 Macroeconomic Issues: Economic Growth and the Business Cycle Multiple Choice Questions Choose the one alternative that best completes the statement or answers the question. 1. The sources of
More informationPart I (45 points; Mark your answers in a SCANTRON)
Final Examination Name: ECON 4020/ SPRING 2005 Instructor: Dr. M. Nirei 1:30 3:20 pm, April 28, 2005 Part I (45 points; Mark your answers in a SCANTRON) (1) The GDP deflator is equal to: a. the ratio of
More informationChapter 6 Measuring National Output and National Income
Chapter 6 Measuring National Output and National Income 1 Multiple Choice 1) The total market value of all final goods and services produced within a given period by factors of production located within
More informationMacroeconomics CHAPTER 7. Tracking the Macroeconomy
Macroeconomics CHAPTER 7 Tracking the Macroeconomy PowerPoint Slides by Can Erbil 2006 Worth Publishers, all rights reserved What you will learn in this chapter: How economists use aggregate measures to
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
These 101 questions have been randomly selected (for the chapters eligible for examination) by the computer from the test bank that accompanies your text. Your prof. has not seen these questions, so as
More informationAggregate Demand and Aggregate Supply
Aggregate Demand and Aggregate Supply Chapter 19 Copyright 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department,
More informationMODERN PRINCIPLES OF ECONOMICS Third Edition ECON 322 INTERMEDIATE MACROECONOMIC THEORY
MODERN PRINCIPLES OF ECONOMICS Third Edition ECON 322 INTERMEDIATE MACROECONOMIC THEORY 1 MODERN PRINCIPLES OF ECONOMICS Third Edition Why learn about macroeconomics? 5 ECONOMIC QUESTIONS THAT WILL SHAPE
More information2/14/2008. The circular flow of goods and incomes. firms and households. goods markets. Goods and services. real flows: goods and services
The circular flow of income Chapter 22 Introduction to Macroeconomics Economics, 4 th edition Stiglitz & Walsh firms and households goods markets real flows: goods and services The Economic Problem Goods
More informationEconomics 102 Discussion Handout Week 14 Spring Aggregate Supply and Demand: Summary
Economics 102 Discussion Handout Week 14 Spring 2018 Aggregate Supply and Demand: Summary The Aggregate Demand Curve The aggregate demand curve (AD) shows the relationship between the aggregate price level
More informationBEFORE YOU BEGIN Looking at the Chapter
Name Date Period MEASURING ECONOMIC PERFORMANCE Chapter 12 BEFORE YOU BEGIN Looking at the Chapter Fill in the blank spaces with the missing words. GDP is the total value of all goods and services produced
More informationFINAL EXAM STUDY GUIDE
AP MACROECONOMICS-2018 Name: FINAL EXAM STUDY GUIDE Instructions: DUE: Day of FINAL EXAM => Friday 12/21 st (1 st & 2 nd Periods) Thursday 12/20 th (4 th period) Section 1: PRODUCTION POSSIBLITIES FRONTIER
More informationfile:///c:/users/moha/desktop/mac8e/new folder/coursecompass_fi... Creation Settings
file:///c:/users/moha/desktop/mac8e/new folder/coursecompass_fi... COURSES > BA121 > CONTROL PANEL > POOL MANAGER > POOL CANVAS Add, modify, and remove questions. Select a question type from the Add drop-down
More informationSSC 260 : Introduction to Social Sciences : Economic Section
SSC 260 : Introduction to Social Sciences : Economic Section Jaruwan Chontanawat Topic 2: Economic force in Daily life (II) : Introduction to Macroeconomics Outlines: Overview of Macroeconomics & Development
More informationCosumnes River College Principles of Macroeconomics Problem Set 3 Due March 1, 2017
Spring 2017 Cosumnes River College Principles of Macroeconomics Problem Set 3 Due March 1, 2017 Name: Instructions: Write the answers clearly and concisely on these sheets in the spaces provided. Do not
More informationMASSEY UNIVERSITY MANAWATU CAMPUS
MASSEY UNIVERSITY AWATU CAMPUS EXAMINATION FOR 178.100 PRINCIPLES OF MACROECONOMICS Semester One 2015 Time allowed: THREE (3) hours All students are required to answer ALL the questions. All questions
More informationGROSS DOMESTIC PRODUCT
GROSS DOMESTIC PRODUCT 1. The three types of unemployment are,, and. 2. If Frank just moved to town and is looking for a job, he would be considered part of unemployment. 3. If Lisa was laid off from her
More informationWhat is Macroeconomics?
Introduction ti to Macroeconomics MSc Induction Simon Hayley Simon.Hayley.1@city.ac.uk it What is Macroeconomics? Macroeconomics looks at the economy as a whole. It studies aggregate effects, such as:
More informationIntroduction To Macroeconomics
Introduction To Macroeconomics Intro to Macro The economy is aggregated into 5 sectors: Households Firms Government Foreign Financial These sectors interact with each other in three sets of markets: Goods
More informationCHAPTER 2. A TOUR OF THE BOOK
CHAPTER 2. A TOUR OF THE BOOK I. MOTIVATING QUESTIONS 1. How do economists define output, the unemployment rate, and the inflation rate, and why do economists care about these variables? Output and the
More informationINTRODUCTION TO MACROECONOMICS
INTRODUCTION TO MACROECONOMICS Lesson 01 COURSE DESCRIPTION There are two major branches in economics: Microeconomics Macroeconomics MACROECONOMICS Macroeconomics provides a framework for the study of
More informationThe Great Depression. Economic Forces in American History
The Great Depression Economic Forces in American History The Great Depression: Outline Contours of the Decline Explaining the Downturn Explaining the Severity Some old explanations Some recent explanations
More informationMEASURING A NATION S INCOME
10 MEASURING A NATION S INCOME LEARNING OBJECTIVES: By the end of this chapter, students should understand: why an economy s total income equals its total expenditure. how gross domestic product (GDP)
More informationPrinciples of Macroeconomics Introductory quiz
Principles of Macroeconomics Introductory quiz Academic Program: MSc in Banking and Finance Semester: Fall 2011/12 Instructor: Dr. Nikolaos I. Papanikolaou Office: Luxembourg School of Finance, KB2-E02
More informationChapter 11 Aggregate Demand I: Building the IS -LM Model
Chapter 11 Aggregate Demand I: Building the IS -LM Model Modified by Yun Wang Eco 3203 Intermediate Macroeconomics Florida International University Summer 2017 2016 Worth Publishers, all rights reserved
More informationIntroduction to Economics
Introduction to Economics Topic 6 (Macroeconomics): Measuring aggregate production and income Coordinator lecturer: Levi Pérez (lperez@uniovi.es) University of Oviedo (Spain, ES EU) Overview 1. Basic macroeconomic
More informationLECTURE NOTES ON MACROECONOMIC PRINCIPLES
LECTURE NOTES ON MACROECONOMIC PRINCIPLES Peter Ireland Department of Economics Boston College peter.ireland@bc.edu http://www2.bc.edu/peter-ireland/ec132.html Copyright (c) 2013 by Peter Ireland. Redistribution
More informationOPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS
18 OPEN-ECONOMY MACROECONOMICS: BASIC CONCEPTS LEARNING OBJECTIVES: By the end of this chapter, students should understand: how net exports measure the international flow of goods and services. how net
More informationThings you should know about inflation
Things you should know about inflation February 23, 2015 Inflation is a general increase in prices. Equivalently, it is a fall in the purchasing power of money. The opposite of inflation is deflation a
More informationFEEDBACK TUTORIAL LETTER
FEEDBACK TUTORIAL LETTER 2 ND SEMESTER 2018 ASSIGNMENT 1 INTERMEDIATE MACRO ECONOMICS IMA612S 1 Course Name: Course Code: Department: INTERMEDIATE MACROECONOMICS IMA612S ACCOUNTING, ECONOMICS AND FINANCE
More informationNotes II: Measuring the Economy
Notes II: Measuring the Economy Julio Garín Intermediate Macroeconomics Spring 2018 Intermediate Macroeconomics Notes II - Measuring the Economy Spring 2018 1 / 72 Preliminaries While the GDP and the rest
More informationChapter 2: The Measurement and Structure of the National Economy
Chapter 2: The Measurement and Structure of the National Economy Cheng Chen School of Economics and Finance The University of Hong Kong (Cheng Chen (HKU)) ECON2102/2220: Intermediate Macroeconomics 1 /
More information1. Introduction to Macroeconomics
Fletcher School of Law and Diplomacy, Tufts University 1. Introduction to Macroeconomics E212 Macroeconomics Prof George Alogoskoufis The Scope of Macroeconomics Macroeconomics, deals with the determination
More information