Topics for Exam 1
Principles of Macroeconomics
Wednesday April 18, 2001

 Baumol and Blinder textbook: Chapters 1-7


I. Introduction to Macroeconomics

A. Review of market economics

B. The U.S. in the World Economy D. Macroeconomic relations E. Growth
    1. shifting production possibilities frontier
    2. increasing resources (factors of production)
        a. investment
        b. education, immigration, health
        c. conservation, resource enhancement, exploration
        d. technological change
    3. calculating compound growth
 

II. Financial Markets

A. Present value
    1. meaning
    2. calculation
        a. time
        b. impact of interest rate

B. Bond Markets

C. Credit Markets D. Stock Markets D. Foreign Exchange Markets III. Macroeconomics

A. Measuring National Income

B. Aggregate Demand and Aggregate Supply
        1. total spending and total production
        2. shifting AD
        3. shifting AS
        4. equilibrium
 

B. Measuring the Price Level

C. Unemployment IV. Policy

A. Contractionary policy
1. anti-inflation
2. fiscal policy: decrease spending, increase taxes
3. monetary policy: decrease money supply, increase interest rates

B. Expansionary policy
1. anti-unemployment
2. fiscal policy: increase spending, decrease taxes
3. monetary policy: increase money supply, decrease interest rates

C. Other policies


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