Course Outline--Principles of Economics II (Macro)

Philip Leatherwood, Senior Lecturer of Economics

Kazakh Institute of Management, Economics, and Forecasting

Introduction

How to approach the study of Macroeconomics

Macro vs. MicroeconomicsNational Income Accounts

Circular Flow of income

Injections and leaks

Income, expenditure, output

Definitions

Gross vs. net

National vs. domestic

Real vs. nominal

Total vs. per capita

Factor cost

Market prices

Limits of national inome accounts

Measurements over time

International comparisons

Measurements

Gross vs. net

National vs. domestic

Real vs. nominal

Total vs. per capita

Factor cost

Market prices

Macroeconomic Policy Objectives

Growth and development

Full employment

Price stability

External equilibrium

Macroeconomic models

Aggregate Demand

fiscal policy

monetary policy

foreign income changes

external shocks

Aggregate Supply

Macroequilibrium

Legislation

Investment

labor market effects

supply side policies

controversy over the character of aggregate supply

The components of demand

consumption

investment

government spending

net exports

The Keynesian Model

diagram

multiplier

accelerator

conflicts of policy objectives

Unemployment and Inflation

definitions

measurement

causes

solutions

Modeling the macro policy debate

testing fiscal policy

supply side economics

Money and Banking

How banks create money

Fractional Reserve System

Monetary Policy

The Macroeconomic debate

Keynesian-monetarist

limits of policy

crowding out

Phillips curve

Laffer curve

Modeling

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