Parkes' Principles of Macroeconomics Assignments Page
Fall 2019, Section 5
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Tentative Schedule and Course Assignments:
October 29, 2019 Chapter 16: The Monetary System continued
- Chapter 16: The Monetary System continued
- Banks and the Money Supply
- 100% Reserve Banking
- Money Creation and Fractional Reserve Banking
The Fed's Tools of Monetary Policy
Federal Reserve Basics - PowerPoint shown in class
PowerPoint for Chapter 16 The Monetary System
October 31, 2019 Chapter 17: Money Growth and Inflation
- Chapter 17: Money Growth and Inflation
- The Classical Theory of Inflation
- The Level of Prices and the Value of Money
- Money Supply, Money Demand, and Monetary Equilibrium
- The Effects of a Monetary Injection
- A Brief Look at the Adjustment Process
- The Classical Dichotomy and Money Neutrality
- Velocity and the Quantity Equation
- The Inflation Tax
- The Fisher Effect
- The Costs of Inflation
- A Fall in PP? The Inflation Fallacy
- Shoeleather Costs
- Menu Costs
- Other Costs
The Wizard of OZ
PowerPoint for Chapter 17 Money Growth and Inflation
November 5, 2019 Chapter 20: Aggregate Demand and Aggregate Supply
- Chapter 17: Money Growth and Inflation continued
- The Fisher Effect
- The Costs of Inflation
- A Fall in PP? The Inflation Fallacy
- Shoeleather Costs
- Menu Costs
- Other Costs
The Wizard of OZ
PowerPoint for Chapter 17 Money Growth and Inflation
Chapter 20: Aggregate Demand and Aggregate Supply
- Why the Aggregate Demand Curve Shifts: C, I, G, NX
The Aggregate Supply Curve
Vertical Long-Run AS
Shifts in the LRAS: Land, Labor, Capital, Technology
Short-Run Aggregate Supply
Quiz #13 - Scenario #1 - Brexit, or recession abroad
PowerPoint for Chapter 20: Aggregate Demand and Aggregate Supply
November 7, 2019 Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
- Chapter 20: Aggregate Demand and Aggregate Supply continued - LONG-RUN shift, Note the SRAS shifts too
- Begin Chapter 21: Fiscal Policy and Aggregate Demand - the Multiplier - starting with PPT slide #21
November 12, 2019 Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand - continued
- Chapter 20: Aggregate Demand and Aggregate Supply continued - Review concept - SRAS shifts, SR Equilibrium to LR
- Over time ... the Self-correcting mechanism: wages adjust, business costs adjust, price expectations adjust SHIFTING SRAS
- Over time the Long-run Equilibrium is reached
- Stagflation
- Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand continued
- PowerPoint for Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
November 14, 2019 Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand continued
PAST ASSIGNMENTS:
October 24, 2019 Chapter 16: The Monetary System continued
- Chapter 16: The Monetary System continued
- The Federal Reserve System
- The Fed's Organization
- The FOMC
- Banks and the Money Supply
- 100% Reserve Banking
- Money Creation and Fractional Reserve Banking
- The Fed's Tools of Monetary Policy
- PowerPoint for Chapter 16 The Monetary System
October 15, 2019 Chapter 15: Unemployment
- Chapter 15: Unemployment
- Identifying Unemployment
- How is unemployment Measured?
- What is the Labor Force?
- The Labor Force Participation Rate
- The Natural Rate of Unemployment
- Cyclical Unemployment
- Frictional Unemployment and Structural Unemployment
- Discouraged Workers
- PowerPoint for Chapter 15 Unemployment
October 17, 2019 Exam 2, Chapters 10 - 13, and 15
October 8, 2019 Chapter 13: Saving, Investment, and the Financial System
- Chapter 13: Saving, Investment, and the Financial System
- Financial Markets
- Stock Market
- Bond Market
- Financial Intermediaries
- Banks, Mutual Funds, Etc.
- Saving and Investment in the National Income Accounts
- Identities: Investment = private saving + public saving
- The Market for Loanable Funds
- 3 Very Important Graphs:
- Policy 1: Saving Incentives
- Policy 2: Investment Incentives
- Policy 3: Government Budget Deficits and Surpluses
- Crowding out and the Public Debt
PowerPoint for Chapter 13: Saving, Investment, and the Financial System
October 10, 2019 NO CLASS: In K.C. at the MVEA Conference presenting a paper, etc.
- Due October 10, before 11:59 pm. Paper #1 Due in Bb Learn: Minimum Wage: Where are we now?
October 1, 2019 Chapter 11: Measuring the Cost of Living
- Chapter 11: Measuring the Cost of Living
- The Consumer Price Index
- How is the CPI calculated
- Fix the basket of goods
- Find the prices
- Compute the basket's cost
- Choose a base year and compute the basket
- Compute the inflation rate
Review: How is the CPI calculated
Quiz 11
Problems in Measuring the Cost of Living
- 1. Substitution Bias
- 2. Introduction of New Goods
- 3. Unmeasured Quality Change
- 4. It's an Average
The GDP deflator versus the CPI
Correcting Economic Variables for the Effects of Inflation
- Dollar figures from Different Times
- Indexation
- Real and Nominal Interest Rates
Premium PowerPoint for Ch. 11 Measuring the Cost of Living
October 3, 2019 Chapter 12: Production and Growth
- Chapter 12: Production and Growth
- Economic Growth Around the World
- Productivity: It's Role and Determinants
- Why Productivity is so important
- How Productivity is Determined?
- Physical Capital per worker
- Human Capital per worker
- Natural Resources per worker
- Technological Knowledge
Premium PowerPoint for Ch 12: Production and Growth
Due October 10, before 11:59 pm. Paper #1 Due in Bb Learn: Minimum Wage: Where are we now?
September 24, 2019 Chapter 10: Measuring a Nation's Income
Premium PowerPoint for Ch 10 Measuring a Nation's Income
September 26, 2019 Ch. 11 Measuring the Cost of Living and finish Chapter 10
- Chapter 10: Measuring a Nation's Income
- The Four Components of GDP
- Consumption or PCE (Personal Consumption Expenditures)
- Investment Expenditures
- Government Expenditures
- Net Export Expenditures (Exports minus Imports)
- Real versus Nominal GDP
- The GDP Deflator
Quiz #9: Calculate Real PCE, Investment, and G growth rates and PCE/GDP
Premium PowerPoint for Ch 10 Measuring a Nation's Income
September 17, 2019 Chapter 6: Supply, Demand, and Government Policy continued
- Chapter 6: Supply, Demand, and Government Policy
- Controls on Prices
- Price ceilings
- Price floors (minimum wage, for example)
- ADD Taxes (shift the D or S curve)
PowerPoint for Chapter 6: Supply, Demand, and Government Policy
Review for the exam
September 19, 2019 Exam 1, Chapters 1 - 4, and 6
September 10, 2019 Chapter 4: The Market Forces of Supply and Demand
- Chapter 4: The Market Forces of Supply and Demand
- What is a Market? A competitive Market?
- Demand Side
- The price of the good, movement along the curve
- Shifts: P-P-P-INT
- Supply Side
- The price of the good, movement along the curve
- Shifts: P-P-EST
- Equilibrium: Qd=Qs
- Surplus
- Shortage
- 3 Steps to Changes in Equilibrium
- Note what Ambiguous means
PowerPoint for Chapter 4: The Market Forces of Supply and Demand
September 12, 2019 Chapter 4: continued and Chapter 6: Supply, Demand, and Government Policy
- Chapter 4: The Market Forces of Supply and Demand
- Equilibrium: Qd=Qs
- Surplus
- Shortage
- 3 Steps to Changes in Equilibrium
- Note what Ambiguous means
PowerPoint for Chapter 4: The Market Forces of Supply and Demand
Chapter 6: Supply, Demand, and Government Policy
Controls on Prices
- Price ceilings
- Price floors (minimum wage, for example)
Tesla becomes an Electricity Provider
PowerPoint for Chapter 6: Supply, Demand, and Government Policy
Quiz #6 Answer to Quiz #6
September 3, 2019 Chapter 3: Interdependence and Gains from Trade
- Chapter 3: Interdependence and Gains from Trade
- A Parable for the Modern Economy
- Production Possibilities
- Specialization and Trade
- Comparative Advantage
- Absolute Advanatage
- Opportunity Cost and Comparative Advantage
- Comparative Advantage and Trade
- The Price of Trade
- Applications:
- Serena Williams, Should she mow the lawn?
- Should we trade with other nations?
PowerPoint for Chapter 3: Interdependence and Gains from Trade
Quiz #2: PPF Quiz #2: PPF Answers
September 5, 2019 Chapter 3: Interdependence and Gains from Trade
- Chapter 3: Interdependence and Gains from Trade
- A Parable for the Modern Economy
- Production Possibilities
- Specialization and Trade
- Comparative Advantage
- Absolute Advanatage
- Opportunity Cost and Comparative Advantage
- Comparative Advantage and Trade
- The Price of Trade
- Applications:
- Serena Williams, Should she mow the lawn?
- Should we trade with other nations?
PowerPoint for Chapter 3: Interdependence and Gains from Trade
Introduction to Chapter 4:
Chapter 4: The Market Forces of Supply and Demand
What is a Market? A competitive Market?
Demand Side
- The price of the good, movement along the curve
- Shifts: P-P-P-INT
August 27, 2019 Chapter 1: Ten Principles of Economics
- The Syllabus, Outline, and a little about me
- Chapter 1: What are these 10 Principles of Economics
- How people make decisions
- How people interact
- How the Economy as a Whole Works
PowerPoint for Chapter 1: Ten Principles
August 29, 2019 Chapter 2: Thinking Like An Economist
- Chapter 2: Thinking Like an Economist
- The Scientific Method and the Role of Assumptions
- The Circular Flow: The first model of Economics we will study
- Model 2: The Production Possibilities Frontier (PPF)
Positive versus Normative Economics
Why Economists Disagree
PowerPoint for Chapter 2: Thinking Like An Economist
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email: andrew at andrewparkes.com
Last Update: November 2, 2019
By Andrew L. H. Parkes, Ph. D.