1. Macroeconomics - the story so far (from G11) -
What do you remember?

2. Review Keynesian GDP, real GDP, GDP growth (OR GNI)
Macroeconomic outcomes and level of economic activities
GDP, real GDP, GDP growth (OR GNI)
unemployment rate/level,
Inflation/deflation
AD-AS Model
Two schools of thought
- New Classical/Monetarist
Keynesian

3. Nominal vs Real (in Japan)

4. AS = function(Labor, Land, Capital, Entrepreneurs) = function (COSTS)
The basic AD/AS model
AD = C + I + G + NX (X – M)
AS = function(Labor, Land, Capital, Entrepreneurs)
= function (COSTS)
 exercise on Introduction Handout

5. The Two Macroeconomic Schools of Thought Handout 1+ exercises

6. Handout 1+ exercises
Make sure that you work through the exercises on Pages 4) and 5) in order to derive the formula.
Carry out the review of understanding on Page 6)
Work through the formative worksheets on pages 7)-12)
Then you will have mastered the multiplier!