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Table of contents
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1. Introduction to Macroeconomics
Worksheet
Introduction to Economics
Three Key Economic Ideas
Productive and Allocative Efficiency
Factors of Production
Positive and Normative Statements
Circular Flow Diagram
Graphing Review
Percentage and Decimal Review
Fractions Review
2. Introductory Economic Models
Worksheet
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency
PPF - Outward Shifts
PPF - Comparative Advantage and Absolute Advantage
PPF - Comparative Advantage and Trade
PPF - Price of the Trade
3. Supply and Demand
Worksheet
Introduction to Supply and Demand
The Basics of Demand
Individual Demand and Market Demand
Shifting Demand
The Basics of Supply
Individual Supply and Market Supply
Shifting Supply
Big Daddy Shift Summary
Supply and Demand Together: Equilibrium, Shortage, and Surplus
Supply and Demand Together: One-sided Shifts
Supply and Demand Together: Both Shift
Supply and Demand: Quantitative Analysis
4. Elasticity
Worksheet
Percentage Change and Price Elasticity of Demand
Elasticity and the Midpoint Method
Price Elasticity of Demand on a Graph
Determinants of Price Elasticity of Demand
Total Revenue Test
Total Revenue Along a Linear Demand Curve
Income Elasticity of Demand
Cross-Price Elasticity of Demand
Price Elasticity of Supply
Price Elasticity of Supply on a Graph
Elasticity Summary
5. Consumer and Producer Surplus; Price Ceilings and Price Floors
Worksheet
Consumer Surplus and WIllingness to Pay
Producer Surplus and Willingness to Sell
Economic Surplus and Efficiency
Quantitative Analysis of Consumer and Producer Surplus at Equilibrium
Price Ceilings, Price Floors, and Black Markets
Quantitative Analysis of Price Ceilings and Floors: Finding Points
Quantitative Analysis of Price Ceilings and Floors: Finding Areas
6. Introduction to Taxes
Worksheet
Introducing Taxes and Tax Incidence
Effects of Taxes on a Market
Elasticity and Taxes
Subsidies
The Laffer Curve
Quantitative Analysis of Taxes
7. Externalities
Worksheet
Externalities: Social Benefits and Social Costs
Public Solutions to Externalities
Private Solutions to Externalities: The Coase Theorem
8. The Types of Goods
Worksheet
Four Types of Goods and Two Characteristics
The Free Rider Problem and the Tragedy of the Commons
Public Goods: Demand Curve and Optimal Quantity
9. International Trade
Worksheet
Exporting and Importing
Sources of Comparative Advantage
Tariffs on Imports
Import Quotas and VERs
Arguments Against International Trade
10. Introducing Economic Concepts
Worksheet
Introducing Concepts - Business Cycle
Introducing Concepts - Nominal GDP and Real GDP
Introducing Concepts - Unemployment and Inflation
Introducing Concepts - Economic Growth
Introducing Concepts - Savings and Investment
Introducing Concepts - Trade Deficit and Surplus
Introducing Concepts - Monetary Policy and Fiscal Policy
11. Gross Domestic Product (GDP) and Consumer Price Index (CPI)
Worksheet
Calculating GDP
Detailed Explanation of GDP Components
Value Added Method for Measuring GDP
Nominal GDP and Real GDP
Shortcomings of GDP
Calculating GDP Using the Income Approach
Other Measures of Total Production and Total Income
Consumer Price Index (CPI)
Using CPI to Adjust for Inflation
Problems with the Consumer Price Index (CPI)
12. Unemployment and Inflation
Worksheet
Labor Force and Unemployment
Types of Unemployment
Labor Unions and Collective Bargaining
Unemployment: Minimum Wage Laws and Efficiency Wages
Unemployment Trends
Nominal Interest, Real Interest, and the Fisher Equation
Nominal Income and Real Income
Who is Affected by Inflation?
Demand-Pull and Cost-Push Inflation
Costs of Inflation: Shoe-leather Costs and Menu Costs
13. Productivity and Economic Growth
Worksheet
Productivity and the Per-Worker Production Function
Institutions that Promote Economic Growth
Growth Rates and the Rule of 70
New Growth Theory
PPF - Growth Analysis
Introducing Concepts - Business Cycle
Business Cycles and Their Characteristics
14. The Financial System
Worksheet
Financial System Definitions
Savings Equal Investment
Market for Loanable Funds
Shifts in the Market for Loanable Funds
Stocks, Bonds, and Mutual Funds
Risk and Insurance
Risk and Diversification
Time Value of Money Calculations
Calculating Bond and Stock Prices
15. Income and Consumption
Worksheet
The Consumption Function
The Saving Function
Determinants of Consumption and Saving
Average Propensity to Consume and Save
Multiplier Effect of Investment Spending
16. Deriving the Aggregate Expenditures Model
Worksheet
Aggregate Expenditures Model and Macroeconomic Equilibrium
AE Model: Graphing Macroeconomic Equilibrium
AE Model: Private Closed Economy
AE Model: Private Open Economy
AE Model and the Multiplier
AE Model: Components
AE Model: Algebraic Approach
Deriving the Multiplier Algebraically
17. Aggregate Demand and Aggregate Supply Analysis
Worksheet
Aggregate Demand
Deriving Aggregate Demand from the AE Model
Shifting Aggregate Demand
Long Run Aggregate Supply
Short Run Aggregate Supply
Shifting Short Run Aggregate Supply
AD-AS Model: Equilibrium in the Short Run and Long Run
AD-AS Model: Shifts in Aggregate Demand
18. The Monetary System
Worksheet
The Functions of Money; The Kinds of Money
Defining the Money Supply: M1 and M2
Required Reserves and the Deposit Multiplier
Introduction to the Federal Reserve
The Federal Reserve and the Money Supply
History of the US Banking System
The Financial Crisis of 2007-2009 (The Great Recession)
19. Monetary Policy
Worksheet
Goals of Monetary Policy
The Demand for Money
The Money Supply on the Graph
Monetary Policy and Aggregate Demand
Expansionary and Contractionary Monetary Policy
Taylor Rule
Quantity Theory of Money
Federal Reserve Policies during the 2007-2009 Recession
20. Fiscal Policy
Worksheet
Introduction to Fiscal Policy
Expansionary and Contractionary Fiscal Policy
Government Purchases and the Multiplier Effect
Taxes, the Multiplier Effect, and Automatic Stabilizers
Budget Surplus and Budget Deficit
Long Run Effects of Fiscal Policy
Criticisms of Fiscal Policy
21. Revisiting Inflation, Unemployment, and Policy
Worksheet
Short Run Phillips Curve
Long Run Phillips Curve
Phillips Curve and Expected Inflation
Phillips Curve and Supply Shocks
Sacrifice Ratio
Disinflation and Deflation
22. Balance of Payments
Worksheet
Balance of Payments: Introduction
Balance of Payments: Current Account
Balance of Payments: Financial Account and Capital Account
Net Exports Equal Net Foreign Investment
Balance of Trade; Trade Deficit and Trade Surplus
23. Exchange Rates
Worksheet
Exchange Rates: Introduction
Exchange Rates: Nominal and Real
Exchange Rates: Equilibrium
Exchange Rates: Shifts in Supply and Demand
Exchange Rates and Net Exports
Exchange Rates: Fixed, Flexible, and Managed Float
Exchange Rates: Purchasing Power Parity
The Gold Standard
The Bretton Woods System
24. Macroeconomic Schools of Thought
Worksheet
Classical Model and Keynesian Model
Monetarist Model
Quantity Theory of Money
New Classical Model
Real Business Cycle Model
Austrian Model
Communism and Karl Marx
25. Dynamic AD/AS Model
Worksheet
Dynamic AD-AS Model: Introduction
Dynamic AD-AS Model: Inflation and Recession
Dynamic AD-AS Model: Fiscal Policy
Dynamic AD-AS Model: Monetary Policy
26. Special Topics
Worksheet
Industrially Advanced Countries (IACs) and Developing Countries (DVCs)
Developing Countries: Obstacles to Development
Vicious Circle of Poverty
20. Fiscal Policy
Criticisms of Fiscal Policy
20. Fiscal Policy
Criticisms of Fiscal Policy
Previous Topic: Long Run Effects of Fiscal Policy
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