Macroeconomics Chapter 1 Textbook Robert Barro: Macroeconomics -- A Modern Approach Others： Macroeconomics by Stephen D. Williamson Economic Growth by Charles I. Jones Macroeconomics Chapter 1
Macroeconomics Chapter 1 Evaluation 4 Assignments 20% Midterm 30% Final 40% Participation 10% Macroeconomics Chapter 1
C h a p t e r 1 Thinking About Macroeconomics Macroeconomics Chapter 1
What can we learn from this course? Macro economics Determining the aggregate economic variables Real variables Nominal variables real GDP Consumption Investment Export & Import Unemployment (employment) General price level Wage rate Rental price Interest rate Exchange rate Macroeconomics Chapter 1
Output, Unemployment, and Prices in U.S. History Macroeconomics Chapter 1
Output, Unemployment, and Prices in U.S. History Growth rate of real GDP for year t Multiply by 100% to get the growth rate of real GDP in percent per year. Macroeconomics Chapter 1
Output, Unemployment, and Prices in U.S. History Macroeconomics Chapter 1
Output, Unemployment, and Prices in U.S. History Macroeconomics Chapter 1
Output, Unemployment, and Prices in U.S. History Macroeconomics Chapter 1
Output, Unemployment, and Prices in U.S. History Inflation rate for year t Macroeconomics Chapter 1
Output, Unemployment, and Prices in U.S. History Macroeconomics Chapter 1
A Brief Introduction of Chinese Success (All data without special notes are from Chinese Statistical Yearbook) Nominal 1978: 2005: GDP 364.5 Billion RMB 18308 Billion RMB GDP p.c. 381 Yuan RMB 14040 Yuan RMB Macroeconomics Chapter 1
Macroeconomics Chapter 1 Real GDP Macroeconomics Chapter 1
Macroeconomics Chapter 1 Growth rate ( in RMB ) Macroeconomics Chapter 1
Macroeconomics Chapter 1 Who enjoys ? Poverty level: <100 yuan p.c. in 1978 250 Million <625 yuan p.c. in 2000 32 Million Macroeconomics Chapter 1
Macroeconomics Chapter 1 In general, Gini coefficient of the income increases since 1985. Macroeconomics Chapter 1
Macroeconomics Chapter 1
Macroeconomics Chapter 1
Macroeconomics Chapter 1 Economic Models Endogenous variables are the ones that we want the model to explain. Exogenous variables are the ones that a model takes as given and does not attempt to explain. Macroeconomics Chapter 1
Microeconomic Foundation A microeconomic approach to study the optimal decisions of individual households and business. For example, how much to save (households), how much to invest (firms). Macroeconomics Chapter 1
Macroeconomics Chapter 1 Economic Models Macroeconomics Chapter 1
Economic Models The Coffee Market Target Determinants of the price of coffee. What pushes up the price of coffee? Rising demand popularity of the coffee culture Health concerns Macroeconomics Chapter 1
Economic Models The Coffee Market Demand curve: Quantity of coffee demand as a function of coffee price, given tea price. Macroeconomics Chapter 1
Economic Models The Coffee Market Macroeconomics Chapter 1
Economic Models The Coffee Market Macroeconomics Chapter 1
Economic Models The Coffee Market Macroeconomics Chapter 1
Economic Models The Coffee Market Macroeconomics Chapter 1
Flexible Vs. Sticky Price Market-clearing condition assumes that prices can adjust freely so that there always exists a price which equates supply to demand. However, this condition fails in the labor market given the existence of unemployment. Disequilibrium a discrepancy between the quantities of labor demanded and supplied. New Keynesian model, argues that some prices are sticky and move only slowly to equate the quantities of goods demanded and supplied. Macroeconomics Chapter 1
Macroeconomics Chapter 1 Economic Models Economic growth model Equilibrium business-cycle model - basic market-clearing model of economic fluctuations Macroeconomics Chapter 1