1 / 8

Comprehensive Overview of Key Macroeconomic Concepts and Measurements

This revision guide covers essential topics in macroeconomics, including the relationship between total income and expenditure, the definition and calculation of GDP, and the breakdown of its major components. It also distinguishes between real and nominal GDP, evaluates GDP as a measure of well-being, and examines inflation as it relates to money supply growth. Additionally, the guide addresses unemployment measurements, the functions of money, and the principles of trade, open-economy macroeconomics, and the cost of living through CPI and GDP deflator comparisons.

mufutau-allen
Télécharger la présentation

Comprehensive Overview of Key Macroeconomic Concepts and Measurements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ECN 3100 Macroeconomics (Revision) Revision

  2. Chapter 23 Measuring a nation’s income • You should know … • the distinction between microeconomics vs macroeconomics • why an economy’s total income equals its total expenditure • how gross domestic product (GDP) is defined and calculated • the break down of GDP into its 4 major components • the distinction between real GDP and nominal GDP • whether GDP is a good measure of economic well-being • circular flow diagram • formulas: GDP, GDP Deflator Revision

  3. Chapter 24 Measuring the cost of living • You should know … • how the consumer price index is constructed • why the CPI is an imperfect measure of the cost of living • how to compare CPI and the GDP deflator as measures of overall price level • how to use a price index to compare dollar figures from different times • the distinction between real and nominal interest rates • formulas: CPI, inflation rate, indexation, real interest rate Revision

  4. Chapter 28 Unemployment • You should know … • the data used to measure the amount of unemployment • what is the natural rate of unemployment • how unemployment can result from minimum wage laws • how unemployment can arise from bargaining between firms and unions • how unemployment results when firms choose to pay efficiency wages • problem in measuring unepmloyment • formulas: unemployment rate, labor force participation rate Revision

  5. Chapter 29 The monetary system • You should know … • what money is and what functions money has in the economy • what the Federal Reserve System is. • how the banking system helps determine the supply of money • what tools the Federal Reserve uses to alter the supply of money • formulas: M1, M2, T-account, money multiplier Revision

  6. Chapter 30 Money growth & inflation • You should know … • why inflation results from rapid growth in the money supply • the meaning of classical dichotomy and monetary neutrality • why some countries print so much money that they experience hyperinflation • how the nominal interest rate responds to the inflation rate • the various costs that inflation imposes on society • formulas: inflation rate, value of money, velocity of money Revision

  7. Chapter 3 Interdependence & gains from trade • You should know … • how everyone can benefit when people trade with one another • the meaning of absolute and comparative advantage • how comparative advantage explains the gains from trade • how to apply the theory of comparative advantage to everyday life and national policy • formulas: opportunity costs for comparative advantage Revision

  8. Chapter 31 Open-economy macroeconomics • You should know … • how net exports measure the international flow of goods and services • how net capital outflow measures the international flow of capital • why net exports must always equal net foreign investment • how saving, domestic investment, and net capital outflow are related • the meaning of nominal exchange rate and the real exchange rate • purchasing power parity as the theory of how exchange rates are determined • formulas: net exports, trade deficit/surplus, net capital outflow, NCO=NX identity, savings Revision

More Related