ECON 103 • Final • Principles of Economics

Main Concerns of Macroeconomics

Output Growth and Business Cycle

Circular Flow Model

What is GDP?

Measuring GDP - Prodution or Value-Added Method

Measuring GDP - Expenditure Method

Example (Expenditure Method)

Measuring GDP - Income Approach and other National Income Accounts

Nominal vs Real GDP

GDP Deflator

Economic Well Being (GDP Per Capita)

GDP Calculation

Components of GDP

Expenditure Method

Real GDP, Nominal GDP and Deflator

Unemployment - Definitions and Concepts

Labor Force Participation Rate and Unemployment Rate Calculation

Labor Force Participation Rate and Unemployment Rate Calculation

Types of Unemployment

Example Types of Unemployment

Problems with Measuring Unemployment

Unemployment and Labor Force Participation Rate Calculation

Unemployment/Labor Force

Unemployment/Labor Force

Labor Market and Structural Unemployment

Calculation Unemployment Rate

Labor Force

Inflation - Definitions and Concepts

Example (Definition of Inflation)

Measuring Inflation - CPI

Example (Calculating CPI)

Example (Measuring Inflation with CPI)

Example (Measuring Inflation with CPI)

Measuring Inflation - PPI

Problems with CPI

CPI vs GDP Deflator

Example (CPI vs Deflator)

Nominal vs Real Interest Rates

Example (Nominal Values and Real Values)

Costs of Inflation

Question (CPI vs GDP Deflator)

Question (CPI)

Question (Nominal vs Real Values)

Question (Nominal vs Real Interest)

Question (CPI vs GDP Deflator)

Components of GDP

Components of GDP

Components of GDP

GDP Calculation

Nominal GDP Calculation

Nominal GDP Calculation

GDP vs GNP

GDP vs GNP

GNP and NNP

Expenditure Method

Expenditure Method

Expenditure Method

Expenditure Method

Real GDP

Nominal vs Real GDP

GDP Deflator

Real GDP, Nominal GDP and Deflator

Real GDP, Nominal GDP and Deflator

Calculation of Disposable Income

Labor Force

Labor Force

Unemployment/Labor Force

Types of Unemployment

Types of Unemployment

Types of Unemployment

Types of Unemployment

Types of Unemployment

Labor Market and Structural Unemployment

Unemployment - Classification

Problems with Measuring Unemployment

Labor Market and Structural Unemployment

CPI

CPI and Inflation

Nominal vs Real Values

Nominal vs Real Interest

Measuring Inflation with CPI

Aggregate Expenditure

Consumption Function

Consumption and Saving

Investment

Investment

Government Purchases

Net Export

Planned Aggregate Expenditure and Equilibrium

Example (Aggregate Expenditure and Equilibrium)

Aggregate Expenditure and Equilibrium

Spending Multiplier and Tax Multiplier

Multipliers

Multipliers with Proportional Income Tax

Multipliers with Proportional Income Tax

Fiscal Policy in Aggregate Expenditure Model

Government Budget and Automatic Stabilizers

Automatic Stabilizers

Consumption Function

Aggregate Expenditure

Disequilibrium and Change in Inventories

Spending Multiplier with Proportional Income Tax and Equilibrium

Equilibrium and Fiscal Policy

Aggregate Demand

Example (Change in AD)

Example (Interest Rate Effects)

Aggregate Supply

Example (Change in SRAS)

Example (SRAS Curve)

Example (LRAS)

Macroeconomic Equilibrium

Effects of Change in Aggregate Demand

Example (Effects of Change in AD)

Example (Effects of Change in AD)

Effects of Change in Short-run Aggregate Supply

Dynamic AD-AS Model

Example (Dynamic AD-AS Model)

Change in AD

Change in AS

Change in AD

Change in LRAS

Change in SRAS

What is Money?

Example (Functions of Money)

Money Supply

Example (Money Supply)

The Role of Commercial Banks

Creating Money

Example (Creating Money)

Central Bank and Monetary Policy

Quantity Theory of Money

Money Market

Money Supply

Creating Money

Creating Money

What is Monetary Policy?

Example (Monetary Policy)

Money Market and Equilibrium

Example (Money Market and Equilibrium)

Monetary Policy and Its Effects

Example (Monetary Policy and Its Effects)

Example (Monetary Policy and Its Effects)

Reserve Markets and Monetary Policy

Example (Reserve Markets and Monetary Policy)

Example (Reserve Markets and Monetary Policy)

Monetary Policy in Dynamic AD-AS Model

Example (Monetary Policy in Dynamic AD-AS Model)

Taylor Rule

Example (Taylor Rule)

Monetary Policy Effects

Money Market

Expansionary Monetary Policy

Contractionary Monetary Policy

Dynamic AD-AS Model

What is Fiscal Policy?

Fiscal Policy and Its Effects

Example (Fiscal Policy and Its Effects)

Example (Fiscal Policy and Its Effects)

Government Budget and Automatic Stabilizers

Example (Government Budget)

Example (Automatic Stabilizers)

Limitations of Fiscal Policy (Crowding Out Effect)

Example (Crowding Out Effect)

Fiscal Policy and Economic Growth

Example (Fiscal Policy and Economic Growth)

Fiscal Policy and Its Effects

Effects of Fiscal policy

Types of fiscal policy

Automatic Stabilizers

Types of fiscal policy

Current Account

Financial and Capital Accounts

Example (Net Export)

Example (Financial Account)

Example (Balance on Current and Financial Accounts)

Preparing Balance of Payment

Disequilibrium and Change in Inventories

Aggregate Expenditure and Equilibrium

Aggregate Expenditure and Equilibrium

Aggregate Expenditure and Equilibrium

Aggregate Expenditure and Equilibrium

Aggregate Expenditure and Equilibrium

Planned Aggregate Expenditure and Equilibrium

Aggregate Expenditure and Equilibrium

Equilibrium and Fiscal Policy

Equilibrium and Fiscal Policy

Change in AD

Change in AS

Change in AS

Change in AD

Change in AD

Change in AD

Monetary Policy Effects

Expansionary Monetary Policy

Contractionary Monetary Policy

Effects of Fiscal Policy

Monetary vs Fiscal Policy

Question (Crowding Out Effect)

Types of Fiscal Policy

Fiscal Policy and Long-Run Growth