Section 4 Review

In class we reviewed Section 4 and took a quiz on the material.  Afterwards, students were given a review of Section 5.   The homework is linked below.


HW - Section 5 Review
          Read Module 41 (if you have not done so already) and Module 42

Section 7 Review/Section 3 Quiz

In class we reviewed the material for Section 7 focusing on Long Run Economic Growth.  Afterwards, students took a quiz on the material from Section 3 - Output, Unemployment and Inflation.

The notes are attached and the homework is attached/listed below.

Notes - Section 7 Review

HW - Section 4 Review 
       - Read Module 41

Is Long-Term Economic Growth Sustainable?

In class we spent time talking about how countries achieve and maintain economic growth.  Be familiar with Thomas Malthus and his theory that in the long run population growth would deplete the limited resource base leading to famine, disease and war.

The notes are attached and the homework is listed below.

Notes - Is Long-Term Economic Growth Sustainable?

HW - Complete Multiple Choice Questions in Modules 37-40
          Section 3 Review

Long-Term Economic Growth and The Aggregate Consumption Function

In class students learned about the most pressing issue in macroeconomics - long-term economic growth.  Economic growth is measured in real GDP per capita over time (standard of living).  Economic growth is the result of increases in Labor Productivity - (1) Human Capital (education/training), (2) Physical Capital (machinery/infrastructure) and (3) Technology. 

Afterwards students were introduced to the aggregate production function which plotted the positive (but diminishing) relationship between physical capital and real GDP per capita.  Technological progress shifts the curve outward.


The notes are attached and the homework is listed/attached below.

Notes - Long Term Economic Growth and Aggregate Consumption Function

HW - Review - Section 2 - Supply/Demand Curve
          Read Module 38 and Module 39

Section 6 Review - Inflation, Unemployment and Stabalization Policies

In class we reviewed Section 1 - the production possibilities frontier, opportunity cost, marginal cost, absolute/comparative advantage.  Afterwards, we reviewed Section 6.

The notes and Section 6 Quiz are attached below.

Notes - Section 6

Quiz - Section 6

HW - Section 6 Quiz
          Review Section 1 (Modules 1- 4)
          Read Modules 37 and 38

Video - Production Possibilities Frontier

The History of Macroeconomic Theory

In class we reviewed the Phillips Curve which is a model that shows the negative relationship between inflation and unemployment.  Movements along the SRPC are from GWEP and shifts in the SRPC are PNC.

Afterwards, we touched on the history of Macroeconomic Theory.  Students should be familiar with the Classic Model of Price Level, Keynesian Economics, Monetarism, The Natural Rate Hypothesis, Rational Expectations and the real Business Cycle Theory.

Finally, we talked about modern economic thought and that the primary role of the Fed is dealing with inflation and unemployment.

Notes - History of Macroeconomic Theory

HW - Read Module 37
          Finish Review Packet
          Module 35/36 ?s

The Phillips Curve

In class students learned about the economic model that shows the negative relationship between inflation and unemployment: The Phillips Curve (technically the short-run Phillips curve).  Shifts in the SRPC are a result of changes in expected inflation (increase expected inflation; SRPC shifts up) and changes in inputs - Productivity, Nominal Wages, Commodity Prices.  An example would be an increase in commodity prices would shift the SRPC up.  Below I also attached a video describing the Phillips Curve on Khan Academy.

Khan Academy - Phillips Curve

The notes are attached as is a review packet that is due Tuesday, December 9th.

Notes - The Phillips Curve

Macroeconomics Review Packet

HW - Read modules 35 and 36

Inflation and Hyperinflation

In class students learned about why the US follows a policy of moderate inflation (2-3%).  We also discussed the problems with tying to reduce inflation, for example from 15% to 5% (see Aggregate Demand/Aggregate Supply Curve for problems).  We also talked about hyperinflation and why it occurs.  Finally, we talked about the classical model of price level (vertical supply curve) and is a good model for hyperinflation but not so much for the US economy.

The notes are attached and the homework is listed below:


Notes - Inflation, Hyperinflation, Disinflation, Deflation


HW - Read Module 34

Monetary Nuetrality

In class students took a quiz on the financial sector.  Afterwards, students continued to work with the Money Market Model and the Aggregate Supply/ Aggregate Demand Curve.  Students used the models to determine short-run effects of monetary policy on the economy (expansionary vs. contractionary).  Students also learned that in the long-run, monetary policy only affects nominal interest rates and price level.

The homework is listed below and the notes are attached.

Notes - Long-Run effects of Monetary Policy

HW - Read Modules 33 and 34

LR effects of Fiscal Policy on the Budget Deficit

In class students took a look at the budget balance (surplus or deficit) and saw how fiscal policy affects the budget balance (Government Savings = Taxation - Government Spending - Trade).  Remember, different types of fiscal policy (Taxations, Government Spending and Transfers) may have the same effect on the budget balance but not the same effect on the economy. 

We also discussed that running a deficit can be good if it eases a recession and increases unemployment.

The class notes are attached and the homework is listed below.

Notes - Fiscal Policy on the Budget Deficit

HW - Study for Quiz - The Financial Sector
          Read Module 31/32

Loanable Funds Market

In class students were introduced to the second macroeconomic model (6th overall) they will have to be familiar with on the upcoming quiz:  The Market for Loanable Funds.  One thing students must remember is that Investment is inversely related to Interest Rate; so interest rates increase, investment decreases....as investment is undertaken if and only if:  rate of return > interest rate.


The homework and notes are attached below.


Notes - Loanable Funds Market


Notes - Review - The Financial Sector


HW - Practice Quiz - The Financial Sector
          Read Module 30

Monetary Policy and the Liquidity Preference Model for Money Demand

In class we discussed the role of the Federal Reserve and the three policies they use to control money supply/economy (1. Reserve Requirement, 2. Discount Window, 3. Open Market Operations).

Afterwards, students were introduced to the first model in Section 5 (5th overall) which took a look at the opportunity cost/preference for holding cash. 

The homework is linked below and the notes are attached.

Notes - Monetary Policy and Liquidity Preference Model

HW - pgs.291-294 (10, 12, 14, 15, 22)

Also, read over the link below of the Federal Reserve web page:

History of the Federal Reserve

History of the US Economy (1900-Present)

In class we discussed the history of the US economy, the 5 economic crisis and the federal reserve system.  The 5 economic crisis are as follows:

1.  Panic of 1907 - Trusts speculating in stock market
2.  Great Depression (1930s) - Commodity Prices led to bank runs
3.  Savings and Loans Crisis (1980s) - High inflation, devaluation of S & L Assets (mortgages), bank
                                                              runs
4.  Long-Term Capital Management (1990s) - complicated derivatives/no market, devalued when try
                                                                           to sell...same assets devalued on other funds balance
                                                                           sheet.
5.  Subprime Lending/Housing Bubble (2008) - lending to undesirable individuals eventually leading
                                                                             to market failure (almost) because the financial
                                                                             system is interconnected.

We  also talked about the Federal Reserve System which is made up of a Board of Governors (7) appointed at various times by the president to serve 14 year terms.  Also, the 12 regional federal reserve banks. More information is linked below in the notes.

Notes - The Federal Reserve

HW - Read Modules 27 and 28

How Banks Make Money

In class we talked about the role of banks in our financial system.  Students should be familiar with the reserve ratio (% of reserves banks are required to keep on hand) set by the fed and bank regulation (FDIC, capital requirements, reserve requirements, discount window).   T accounts displaying a bank's (or business's) financial position were also discussed.

Finally, discussion surrounded banks ability to make money and the multiplying affect of a checkable bank deposit that is determined by the reserve ratio.

The notes are attached and the homework is listed below.

Notes - The Role of Banks

HW - Read Module 26 and Module 27

Money and Present Value

In class students took a quiz on Aggregate Supply/Aggregate Demand.  Afterwards, we reviewed the financial system, financial assets (stocks, bonds, loans), and financial intermediaries (mutual funds, pension funds, insurance agencies, banks).

Finally, we covered module 23 and module 24 which covered the role of money and different types of money.  Then we looked at Present Value in making choices.

The notes are attached and the homework is listed below.

Notes - Money and Present Value

HW - pg. 290 (5-9)
          Read Module 25 - Banking and Money Creation

Saving, Investment and the Financial System

In class students reviewed Section 4 - Aggregate Demand and Aggregate Supply-for the quiz that will be administered on Monday, November 3rd.  Linked below is notes summarizing the section.

Summary Notes - Section 4

Afterwards, we took a look at the Financial System in the United States.  Module 22 has very important information that every contributing citizen should be educated upon.  Reread the section if you are having trouble understanding any of the concepts.  The notes for the section are attached below.

Notes - Savings, Investment and the Financial System

HW - Study for Section 4 Quiz
          Read Modules 23 and 24 - "Money"

Fiscal Policy and the Multiplier

In class we finished up section four by using the multiplier to estimate the impact of fiscal policy.  Afterwards, students took a practice quiz on section four.

The notes for Module 21 are attached below.

Notes - Fiscal Policy and te Multiplier

The practice quiz and answer key are attached below.

Practice Quiz #4

Answer Key - Practice Quiz #4


HW - Study for Quiz 
        - Read Module 22 and 23

Fiscal Policy

In class we reviewed the AD/SRAS/LRAS curves and talked about expansionary fiscal policy and contractionary fiscal policy.


Expansionary Fiscal Policy                                             Contractionary Fiscal Policy
-cut taxes                                                                            -increase taxes
-increase government spending                                         -decrease government
-increase government transfers                                          -decrease government transfers

The notes are attached and the homework is listed below.

Notes - Fiscal Policy

HW - pgs. 216-218 (2, 4, 5, 6, 7, 9, 10, 11, 13, 15)
          Module 20 questions
          Read Module 21

Putting the 3 curves together-AD, SRAS and LRAS

The economy can be in two states: (1) on the SRAS or (2) on both the SRAS and LRAS.

Remember the demand shocks - GWEP
and the supply shocks - PNC

Be familiar with short run effects of positive demand shock-inflationary gap- and negative demand shock - recessionary gap.

The homework is listed below and the notes are attached.

Notes - AD, SRAS and LRAS

HW - Complete Module 19 questions (to be turned in)
        - Read Module 20 and 21

Aggregate Demand and Aggregate Supply

In class students were introduced to the Aggregate Demand curve and learned it was downward sloping because of the Wealth effect, Interest Rate effect and Exchange Rate effect.  Shifts in the demand curve are due to GWEP (changes in: Government Policies, Wealth, Expectations, Physical Stock).

Afterwards, students were introduced to the two Aggregate Supply curves (SRAS/LRAS).  The SRAS curve is upward sloping because of "sticky wages" meaning wages are slow to increase and reduce production costs in the short run.  Shifts in the SRAS are due to PNC (changes in: Productivity, Nominal Wages, Commodity Prices).

The LRAS is vertical because in the LR all process are flexible.  Shifts in the LRAS are from (1) changes in Resources (CELL) and (2) changes in technology.


The homework is listed below and the notes are attached.

Notes - Aggregate Demand and Aggregate Supply


HW - Complete Module 17 and 18 Questions
        - Read Module 19

Income and Expenditure

In class students learned about income and expenditure.  Be familiar with the Marginal Propensity to Consume (MPC), the Marginal Propensity to Save (MPS) and Multiplier (1/(1-MPC)).

The homework is listed below and the notes are attached.

Notes - Income and Expenditure

HW - Read Module 17 and 18

Quiz - Output, Unemployment, Inflation

In class students took a quiz on Section 3 - Output, Unemployment and Inflation.  Since there were so many students missing we did not move forward.

For homework, read Module 16 (Income and Expenditure) and Module 17 (Aggregate Demand) which we will cover in depth next class.

Output, Unemployment and Inflation

In class we went over Module 14 and 15 questions.  Afterwards, we went over Section 3 - Output, Unemployment and Inflation.  Students also completed a Practice Quiz during class.

The notes are attached below as is the practice quiz and answer key. The homework is listed below.

Notes - Output, Unemployment and Inflation

Practice Quiz - Section 3

Answer Key - Practice Quiz

HW - Study for Quiz #3
        - Read Module #16

Inflation

In class we talked about inflation and the costs associated with rising price level (shoe-leather, menu, unit of account).  Know the different costs and also know the real interest rate = nominal interest rate - inflation. 

The notes are attached.

Notes - Inflation

HW - Finish Module 14/15 Questions (I will be checking they are complete)

**Quiz #3 - Section 3 - Modules 10-15 is scheduled for Tuesday 10/14

Friday, October 3rd

During class work on the following:

1) With your Syracuse Partner complete the following problems on pgs. 150-155 (1-4, 6, 9, 12, 13, 14, 17) in their textbook.  Answer all questions and turn in completed work in tray by the end of the period.  

*Students will need computers to complete questions 9 and 12 – they can use the computers in the back of the room.

 

HW - No homework unless you are absent-then you must complete the classwork listed above.

 

Unemployment

In class we reviewed gross Domestic Product (GDP) before moving on to unemployment.  Students need to be familiar with how to calculate unemployment and know the difference between frictional and structural unemployment.

The notes are attached and the homework is listed below.

Notes - GDP (cont.)

Notes - Unemployment

HW -  complete Module 12 & 13 questions
        -  read Module 14 & 15

GDP - Output

In class students took quiz #2 on the supply/demand curve. 

Afterwards, we continued to take notes on GDP - differentiating between nominal GDP (total of goods/services at current year price level) vs. real GDP (total of goods/services at a baseline price level).

The notes are attached and the homework is listed below.

Notes - GDP

HW - Complete Module 11 Questions
          Read Module 12 and Module 13
          GDP question

Circular Flow Model and GDP

In class students were introduced to the circular flow model which identifies the movement of goods, service and resources with the economy.  Afterwards, students were introduced to Gross Domestic Product (GDP) which is a measurement of aggregate output in the economy.  While there are three ways that GDP is calculated, income approach, production approach and spending approach. 

The notes are attached and the homework is listed below.

Notes - The Circular Flow Model and GDP

HW - Read Module 11 - Interpreting GDP
          Study for Quiz #2 - Supply/Demand Curve

Supply and Demand Curve cont.

In class we continued talking about the supply/demand curve and market equilibrium.  We also discussed the two acronyms that can be used to remember changes in demand and changes in supply. 

We can use the word SEPTIC (Substitutes, Expectations, Population, Tastes, Income, Compliments) to remember changes in demand. 

We can use the word TIES (Technology, Inputs, Expectations, Suppliers) to remember changes in supply.

The homework is listed below and the notes are attached, as well as the practice quiz with answer key. 

Notes - Supply/Demand cont.

Practice Quiz - Modules 5-7

Answer Key - Practice Quiz - Modules 5-7

HW - Study for Quiz #2
          Read Module #10

Supply,Demand and Market Equilibrium

In class students first reviewed the downward sloping demand curve and demand schedule.  Students must be able to differentiate a movement along the demand curve vs. a shift in demand. 

Afterwards, students were introduced to the supply schedule and the upward sloping supply curve.  Like the demand curve, students must differentiate between movements along the curve and a shift in supply.  Shifts or changes in supply are as follows:

1.  Changes in input prices
*2.  Changes in related goods (substitutes/compliments in production)
3. Changes in technology
4.  Changes in expectations
5.  Changes in number of producers


**We will discuss #2. changes in related goods in greater detail next class.

The notes are attached and the homework is listed below.

Notes - Supply, Demand and Market Equilibrium

HW - Reread Module 7, complete Module 7 questions.

**Make-up for Quiz #1 by Monday 9/22

The Demand Curve

In class, students took their first quiz on Modules 1-4, which was an introduction to the field of economics, the Production Possibilities Frontier and the benefits of trade.

Afterwards, students were introduced to the Demand Schedule and the Demand Curve (downward sloping).  Students should know the difference between movements along the demand curve and shifts in the demand curve. 

The is listed below and the notes are attached.

Notes - Module 5 - The Demand Curve

HW - Finish Module 5 questions
        - Read Module 6 and 7

Review Module 1-4

In class we reviewed module 1-4 to prepare students for quiz #1 which will be administered Friday 9/12.

Students should be familiar with all the vocabulary terms we have covered and with the our first economic model - the Production Possibilities Curve or Frontier. 

HW - Study for Quiz #1 (review the questions at the end of each module)
          Read Module 5

Productions Possibilities Curve and the benefits of trade

In class we went over module 3 and module 4.

In module 3, students were introduced to their first economic model, The Productions Possibility Curve."  Students learned about efficient production/allocation, inefficiency and impossibilities. Also remember, economic growth occurs through (1) increase in resources and/or (2) increase in technology.

 In module 4, students were introduced to the benefits of trade.  We looked at absolute advantage and comparative advantage.  *Mutual gains do not depend on person/country being better at producing one type of good-just need a comparative advantage. Trade is always beneficial.

The notes are attached and the homework is listed below.

Notes - Module 3

Notes - Module 4

HW - Complete Module 4 Questions
       - Quiz #1 - Modules 1-4, Friday
       - Read Module 5 for Friday

Economics & Macroeconomics

In class students went over the different types of economics and introduced macroeconomics.  In macroeconomics, we are going to take a look at the impact of and interaction between overall growth/decline (GDP), overall price levels (CPI) and unemployment. 

The homework is listed below and the notes are attached.

Notes - Module 1 and 2

HW - Complete Module 2 questions
        - Read Module 3

First Day!

Welcome Back! I enjoyed meeting all of you today and getting back into the swing of things.  Below, I have attached the course syllabus.

Macroeconomics - Syllabus

HW - Signed Syllabus
        - Read Textbook - Module 1 and 2