Macroeconomics – 7. Economic Growth and Productivity
Define economic growth. What are the four supply factors of growth? What two other factors are important in economic growth? Use PPF analysis to contrast Adam Smith’s golden age of…
Macroeconomics – 6. The Warring Schools of Macroeconomics
What are the three major questions about which the major schools of macroeconomics differ? Explain the difference between rational and adaptive expectations? What is the central policy implication of rational…
Macroeconomics – 5. Unemployment, Inflation, and Stagflation
Why is the distinction between cyclical, frictional, and structural unemployment important? Define the unemployment rate. Explain Okun’s law. Illustrate demand-pull inflation. Illustrate cost-push inflation. What is the Keynesian dilemma that…
Macroeconomics – 4. The Federal Reserve and Monetary Policy
What is monetary policy? What are the three kinds of money? What are the three functions of money? What is the difference between M 1, M2, M3, and L? What…
Macroeconomics – 3. The Keynesian Model and Fiscal Policy
What is the most important assumption underlying the Keynesian model? Illustrate the basic Keynesian model and a recessionary gap. What is a “leakage”? What is the most important leakage in…
Macroeconomics – 2. The Aggregate Supply-Aggregate Demand Model and the Classical-Keynesian Debate
The Classical versus Keynesian controversy is primarily a dispute over what? State Say’s Law. What was Thomas Malthus’ critique of Say’s Law? Use the circular flow diagram to illustrate Say’s…
Macroeconomics – 1. An Overview of Modern Macroeconomics
At a personal level, what kind of questions can macroeconomics help you answer? At a business and professional level, what kind of questions can macroeconomics help you answer? Why is…
Microeconomics 11. Public Goods and Externalities
Name five ways in which government intervenes in the free market. Contrast private versus public goods. Describe the free rider problem. Provide several examples. On what does the economic difference…
Microeconomics – 10. The Capital Market, Interest, and Profits
On a personal level, what kinds of questions can capital analysis help us answer? At a professional level, capital analysis can help business executives answer what kinds of questions? What…
Microeconomics 9. The Labor Market and Wage Determination
Explain why the demand for labor and other factors of production is a derived demand. The derived nature of resource demand implies that the strength of the demand for a…