Parkes' Principles of Macroeconomics Assignments Page
Fall 2017, Section 6
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Tentative Schedule and Course Assignments:
- Chapter 19: A Macroeconomic Theory of the Open Economy
- Supply and Demand for Loanable Funds and for Foreign Currency Exchange
- Alteration in the S & D for LF
- Equilibrium in the Open Economy
- How Policies and Events Affect the Open Economy
- 1. Government Budget Deficits
- 2. Trade Policy
- 3. Political Instability and Capital Flight
Quiz #20: Graphically show how budget deficits, Trade Policy, and Capital Flight affect the real exchange rate.
PowerPoint for Chapter 19: A Macroeconomic Theory of the Open Economy
December 7, 2017 Chapter 19: A Macroeconomic Theory of the Open Economy continued
- PREVIEW and REVIEW for the Final Exam - Quiz #21 is the Online Survey in Bb Learn on the Writing assignments
December 12, 2017: 7:30 to 9:30 am FINAL EXAM - ALL Chapters covered
PAST ASSIGNMENTS:
Week 13
November 21, 2017 Exam 3, Chapters 16 & 17, and Chapters 20 & 21
November 23, 2017 HAPPY THANKSGIVING!!!
Week 12
November 14, 2017 Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
- 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 16, 2017 Chapter 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand continued
Week 11
November 7, 2017 Finish Chapter 17 and Chapter 20: Aggregate Demand and Aggregate Supply
- Chapter 17: Money Growth and Inflation
- The Government's Budget Constraint
- 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
- 3rd Quarter GDP (Advance number)
- 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 #12 - Scenario #1 - Brexit, or recession abroad
PowerPoint for Chapter 20: Aggregate Demand and Aggregate Supply
November 9, 2017 Chapter 20: Aggregate Demand and Aggregate Supply continued
- Chapter 20: Aggregate Demand and Aggregate Supply continued
- Begin Chapter 21: Fiscal Policy and Aggregate Demand - the Multiplier
Week 10
October 31, 2017 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
November 2, 2017 Finish Chapter 16 and 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
PowerPoint for Chapter 17 Money Growth and Inflation
Week 9
October 24, 2017 Chapter 16: The Monetary System
- Review the exam
- Chapter 16: The Monetary System
- The Meaning of Money
- The 3 Functions of Money
- The 2 Kinds of Money
- M1 and M2
- The Federal Reserve System
- The Fed's Organization
- The FOMC
- Banks and the Money Supply
- 100% Reserve Banking
- Money Creation and Fractional Reserve Banking
PowerPoint for Chapter 16 The Monetary System
October 26, 2017 NO CLASS
Week 8
October 17, 2017 REVIEW and Finish Chapter 15: Unemployment
- Review for the exam
- Finish 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
- The Natural Rate of Unemployment
- Cyclical Unemployment
- Frictional Unemployment and Structural Unemployment
- Discouraged Workers
PowerPoint for Chapter 15 Unemployment.pptx
October 19, 2017 Exam 2, Chapters 10 - 13, and 15
Week 7
October 10, 2017 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
PowerPoint for Chapter 13: Saving, Investment, and the Financial System
October 12, 2017 Chapter 15: Unemployment
- Chapter 13: Saving, Investment, and the Financial System
- Financial Markets
- 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
Chapter 15: Unemployment
Identifying Unemployment
PowerPoint for Chapter 15 Unemployment.pptx
Week 6
October 3, 2017 Chapter 11: Measuring the Cost of Living
- Paper #1 Due in Bb Learn: Minimum Wage Revised at 11:59 pm
- 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 8a and the answers
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 5, 2017 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
Week 5
September 26, 2017 Chapter 10: Measuring a Nation's Income
Premium PowerPoint for Ch 10 Measuring a Nation's Income
September 28, 2017 finish Chapter 10: Measuring a Nation's Income
- 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 #7: Calculate Real GDP, PCE, and G growth rates and PCE/GDP Answers to Quiz #7
Premium PowerPoint for Ch 10 Measuring a Nation's Income
Week 4
September 19, 2017 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)
- Taxes
- Sellers instituting a tax
- Buyers instituting a tax
PowerPoint for Chapter 6: Supply, Demand, and Government Policy
Review for the exam
September 21, 2017 Exam 1, Chapters 1 - 4, and 6
Week 3
September 12, 2017 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
Quiz 4: A double shift and the Answers
PowerPoint for Chapter 4: The Market Forces of Supply and Demand
September 14, 2017 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)
Quiz 5: Flag's gas market and the Answers
Exam #1 Review Sheet
Tesla becomes an Electricity Provider
PowerPoint for Chapter 6: Supply, Demand, and Government Policy
Week 2
September 5, 2017 Chapter 3: Interdependence and Gains from Trade
- Chapter 3: Interdependence and Gains from Trade
- A Parable for the Modern Economy
- Comparative Advantage
September 7, 2017 Chapter 3: Interdependence and Gains from Trade (continued)
- Chapter 3: Interdependence and Gains from 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
Week 1
August 29, 2017 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
News discussed in class today:
Oprah
Apple-Jobs
Elon Musk
Hyperloop (Musk)
August 31, 2017 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
Quiz #2: What are the 3 goals of any Macroeconomy? Ans: Full Employment, Price Stability, and Economic Growth
PowerPoint for Chapter 2: Thinking Like An Economist
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Last Update: December 2, 2017
By Andrew L. H. Parkes, Ph. D.