November 29, 2008

Mankiw’s Latest Article in the NYTs

Posted in Aggregate Demand, Consumer Confidence, Fiscal Policy, John Maynard Keynes, Macroeconomics, National Debt, Savings & Investment at 4:53 pm by davidprudente

Here is Professor Mankiw’s latest article appearing in the New York Times…discussing what John Maynard Keynes would do in the current crisis…you’ll be reading about Keynes next in the Worldly Philosophers.

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 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

February 22, 2008

Lovin’ The Rain!

Posted in Aggregate Demand, Aggregate Supply, Assignments at 9:31 am by davidprudente

Well, here we are again; home in the rain. I hope you all enjoy your long weekend and you are being safe and making smart decisions. One smart decision would be to check out Mankiw’s book website and take the online practice quiz for chapter 31. You’ll need to select the AS/AD chapter from the drop down box. Then select Tutorial Quiz from the menu on the left. In this version of the book, the AS/AD chapter  is chapter 20. Remember the 40 question quiz is Monday. Enjoy your weekend.

February 7, 2008

Chapter 31 Aggregate Demand & Aggregate Supply

Posted in Aggregate Demand at 7:58 pm by davidprudente

You should plan on completing pages 701-711 in chapter 31. Please focus on the factors that shift the demand curve.