Macroeconomics II
Philip Leatherwood, Lecturer
Kazakhstan Institute of Management, Economics, and Strategic Planning
26 April, 2001
Review Outline for Final Exam
The following is meant to serve as a partial list of topics that may be covered on you final exam
. It is not comprehensive. For many topics it is expected you will be able to apply graphs and/or examples, as appropriate. You may also be asked to apply these concepts to observed policies or trends, as might be described in a news article.Income-Expenditures Model
Expenditures Multipliers
Tax Multipliers
Fiscal Policy
Budget deficits
The open economy
IS-LM Model
Deriving the IS Curve
Deriving the LM Curve
Components of Money Demand
Equilibrium in both Money and Goods Markets
Fiscal Policy
Crowding Out
Monetary Policy
Trade and Exchange Rates
Fixed Exchange Rates
Flexible Exchange Rates
Interest Rates and Capital Mobility
Purchasing Power Parity
The J Curve
Economic Growth and Policy
Classical Theory
The Business Cycle
The Great Depression
Unemployment Equilibrium
The Phillips Curve
Aggregate Supply
The Long-Run Phillips Curve
Rational Expectations
Adaptive Expectations
Policy Implications
Money and Financial Markets
Tools for money expansion
Money policy
The Quantity Theory of Money
The Money Multiplier
Money Policy Targets
Life-Cycle Theory
Permanent-Income Theory
Supply Side Theory
Laffer Curve