March 31, 2008

Play Ball!

Posted in Articles at 8:45 pm by davidprudente

Well, another baseball season is upon us. While the Orioles didn’t do so well today, perhaps you Baltimore fans will be consoled by the World Champion Boston Red Sox U.S. opening day Tuesday evening in Oakland. Look at it this way; at least the Yankees didn’t win!

Many people no longer see baseball as a significant sport, having been supplanted by football as our nation’s first choice. However, this article provides an example as to why baseball is an important sport and remains our national past-time.

March 28, 2008

Correction to Chapter 29 Reading

Posted in Assignments at 7:22 am by davidprudente

Hi everybody,

I just realized that Mankiw is using a term in chapter 29 that is not commonly used. Mankiw uses the term Net Foreign Investment to determine the nature of a countries foreign trade. The more acceptable term for this is Net Capital Outflow.

So, where ever you read Net Foreign Investment, you should replace the term with Net Capital Outflow. They mean the exact same thing – NFI is just a term that Mankiw was trying to get used as the common term; he was not successful.

March 25, 2008

Consumer Confidenvce at 5 Year Low

Posted in Articles, Consumer Confidence, Economic Indicators at 11:47 am by davidprudente

Here’s an article from CNN that reports Consumer Confidence is at a five year low. If you recall, we discussed consumer confidence earlier in the year when we studied Economic Indicators. How is it that consumer confidence drives economic behavior?

March 21, 2008

For Arianna

Posted in Uncategorized at 7:48 am by davidprudente

A Picture of the Prudente Family Football Cup

Enjoy The Break!

Posted in Uncategorized at 7:43 am by davidprudente

I hope you all have a great Spring Break!

Homework: Be sure to read chapter 29 over break as I will be quizzing you upon your return.

I plan on posting several articles during the week, so check out the blog…

March 18, 2008

Review For Exam

Posted in Aggregate Demand, Aggregate Supply at 4:21 pm by davidprudente

Chapter 31

  • Why the AD curve slopes downward:
    • wealth effect
    • interest-rate effect
    • exchange-rate effect
  • Factors that shift the AD curve:
    • Δ Consumption
    • Δ Investment
    • Δ Government Spending
    • Δ Net Exports
  • Why the AS curve slopes upward:
    • Misperceptions theory
    • Sticky-wage theory
    • Sticky-price theory
  • Why the SRAS curve might shift
    • Δ in Labor
    • Δ in Technology
    • Δ Natural Resources
    • Δ Capital
    • Δ in expected price level

Chapter 32

  • Liquidity preference theory
  • MPC & MPS
  • Spending Multiplier 1/1-MPC
  • The Crowding-out Effect
  • Automatic Stabilizers

Chapter 33

  • Phillips Curve
  • Natural Rate Hypothesis
  • Supply Shock
  • Stagflation
  • Sacrifice-Ratio
  • Rational Expectations Theory

March 17, 2008

330 MPG – Now That’s More Like It!

Posted in Articles at 8:23 pm by davidprudente

Check out this new hybrid car that touts a 330 mpg standard. As the site suggests, “that’s 195 mpg more than President Bush’s recent energy bill.”

 I think they still have a little way to go with regards to comfort and luxury…but I always wanted one of those Jetson flying cars:

March 16, 2008

Mankiw on the Trade Debate

Posted in International Trade at 6:56 pm by davidprudente

Mankiw Article Graphic

The author of our text discusses the current trade debate amongst the leading presidential candidates in an article from today’s New York Times.

March 13, 2008

New Five Dollar Bill

Posted in Uncategorized at 7:24 pm by davidprudente

Just a random post. The Treasury has unveiled the new Five dollar bill. Here’s the CNN article.

Five dollar bill

March 9, 2008

End to the Good Times (Such as They Were)

Posted in Aggregate Demand, Aggregate Supply, Articles at 4:21 pm by davidprudente

Here’s an interesting graphic from the New York Times showing a downturn in some key economic indicators. Not a pretty picture. What do you think has happened to the AD/AS curve over the past 6 months?

Signs of Trouble

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