A word document explaining the difference between the Expenditure Approach and the Income Approach to calculating GDP.

A link to an ONLINE TEXT BOOK Principles of Macroeconomics


ANSWERS TO TEST ON NATIONAL INCOME ACCOUNTING



The following is the Power Point presentation shown in class regarding the Aggregate Demand/Aggregate Supply Model
UPDATED VERSION

The following is a Word document containing the notes given in class 26/05/2010 explaining the natural adjustment process of an economy starting at FE macro eq after a positive demand shock.


The following is a Word document containing an explaination of the natural process of adjustment of an economy starting at FE macro eq after a NEGATIVE demand shock (compare your explanation and illustration to mine to be sure you did yours correctly!)


The following is a Word document outlining how an economy recovers from demand shocks and/or supply shocks. First it illustrates the situations whereby there is no government intervention and then it illustrates the situations whereby there is governement intervention.




May 28 2010
- In class today I explained the concepts of monetary and fiscal policy to you. On wednesday, I explained and illustrated the natural process of adjustment an economy goes through after a positive demand shock, causing an inflationary gap. For homework after that class, you were asked to write up an explanation and illustrate how an economy would naturally recover from a negative demand shock, by foloowing my notes given in that class. Today I explained and illustrated how government intervention would play a role in the recovery of an economy back to FE macro equil after a positive demand shock.
YOU SHOULD: write an explanation and illustrate how government intervention would play a role in the recovery of an economy after a NEGATIVE demand shock. Then you should compare the result of that situation to the result if there were no gov intervention (if the economy were left to adjust naturally).
YOU SHOULD: write an explanation and illustrate the natural process of adjustment an economy would go through if they faced a positive SUPPLY shock, and then do the same for a NEGATIVE supply shock. You should then compare those two situations to the situation whereby the gov may intervnene (recall that the gov intervenes by using fiscal or monetart policy in order to influence AD).In a few days I will post the explanations and illustrations of those situations so you can check your work.

NOTES with regards to UNEMPLOYMENT

NOTES with regards to UNEMPLOYMENT

This document contains my NOTES regarding the answers to the SL TEST on AD/AS taken on 10/06/2010