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Finance, Saving, and Investment
Chapter 7 is the second of four chapters that examine the economy in the long run when the economy is at full employment. The following chapters focus on money and the price level, as well as the exchange rate and balance of payments. After these chapters, the next section examines macroeconomic fluctuations by developing the AS-AD model. The material presented in Chapter 7 is used in many of the following chapters. For instance the result that the real interest rate is determined in the loan ab...
- Class notes
- • 14 pages •
Chapter 7 is the second of four chapters that examine the economy in the long run when the economy is at full employment. The following chapters focus on money and the price level, as well as the exchange rate and balance of payments. After these chapters, the next section examines macroeconomic fluctuations by developing the AS-AD model. The material presented in Chapter 7 is used in many of the following chapters. For instance the result that the real interest rate is determined in the loan ab...
Economic Growth
Chapter 6 is the first of four chapters that examine the economy in the long run when the economy is at full employment. The following chapters focus on finance and investment, money and the price level, and the exchange rate and balance of payments. After these chapters the next section examines macroeconomic fluctuations by developing the AS-AD model. The material presented in Chapter 6 provides the long run fundamental variables and results that need to be remembered as various other models a...
- Class notes
- • 17 pages •
Chapter 6 is the first of four chapters that examine the economy in the long run when the economy is at full employment. The following chapters focus on finance and investment, money and the price level, and the exchange rate and balance of payments. After these chapters the next section examines macroeconomic fluctuations by developing the AS-AD model. The material presented in Chapter 6 provides the long run fundamental variables and results that need to be remembered as various other models a...
Macro Economics Notes with solutions
•After completing Chapter 1, the student will have a good sense for the range of questions that economics addresses and will be on the path towards an economic way of thinking. The students will begin to think of cost as a forgone alternative—an opportunity cost—and also about making choices by balancing marginal costs and marginal benefits. Chapter 2 reinforces the central themes of Chapter 1 by laying out a core economic model, the production possibilities frontier (PPF), and using it ...
- Class notes
- • 15 pages •
•After completing Chapter 1, the student will have a good sense for the range of questions that economics addresses and will be on the path towards an economic way of thinking. The students will begin to think of cost as a forgone alternative—an opportunity cost—and also about making choices by balancing marginal costs and marginal benefits. Chapter 2 reinforces the central themes of Chapter 1 by laying out a core economic model, the production possibilities frontier (PPF), and using it ...