1. Macro Objectives Talk’n’ Economics –Vocabulary: GDP, Inflation, Debt, Supply, Demand…and much, much more Economic Facts –Descriptions of the US and world economies Economic Models –Simplifying a complex reality Economic Policy Analysis –Laissez – faire vs. activism The Economic Way of Thinking

2. Macro Concerns Jobs Growth Price Stability Government Budget Balance of Payments Exchange Value of Dollar

3. Macro Pictures: Jobs

4. Macro Pictures: Unemployment

5. Macro Pictures: Prices

6. Macro Pictures: Budget Deficit

7. Macro Pictures: Payments Deficit

8. Macro Pictures: Exchange Rate

10. Micro Foundations: A Brief Review Production Possibilities Frontier Quantity of Computers Produced Quantity of Cars Produced A 0 B Feasible but Inefficient C D Production Possibilities Frontier  Efficient Points

11. Supply Demand Price of Ice-Cream Cone Quantity of Ice-Cream Cones Micro Foundations: A Brief Review Supply and Demand 2134567891012110 $3.00 2.50 2.00 1.50 1.00 0.50 Equilibrium