Macroeconomic Models. Tutorial Cluster 2. Screenshots

Description

Tutorial Cluster 2 includes tutorials 4 to 6 of Macroeconomic Models.

The economys output is determined by the input of factors of production like labor and capital. When wages and prices are flexible, the real wage determines the input of labor and the output of goods and services for given input of capital.

Tutorial 4 reviews the Keynesian models proposition that when wages, prices and the real wage are fixed output (and employment) are determined by planned aggregate expenditure, AE, in the market for goods and services. AE is composed of planned consumption, investment, government expenditure and net exports.

Within the range of output and income that appears from the Keynesian model of the market for goods and services firms supply any quantity of goods and services people demand. This effectively generates a linear supply curve with a slope of 45 degrees.

The economys equilibrium output and income - that may differ from potential output and income - is where AE is equal to output, Y, that is where the AE curve intersects the 45 degree line.

Tutorial 5 reviews how a given change in exogenous demand shifts the AE curve and generates a larger change in equilibrium output and income due to the multiplier effect.

Tutorial 6 reviews how fiscal policy affects aggregate demand and equilibrium output and income by way of taxes and government expenditure.

Key topics of Tutorial 4:

Output in the Classical Model. The Keynesian alternative.
The consumption function. The savings function.
The marginal propensities to consume and save.
Planned aggregate expenditure, AE.
The exogenous (autonomous) variables of aggregate expenditure.
Equilibrium output and income in the short term.
Computing the short term equilibrium output and income.


Key topics of Tutorial 5:

Exogenous and endogenous demand variables.
Short term equilibrium in the market for goods and services.
The effect on equilibrium Y of an exogenous change in AE.
The income generating flow of consumption.
Drains on the income generating flow of consumption (mps and mtr).
The multiplier.
Computing the multiplier and the effect on equilibrium Y of an exogenous change in AE.

Key topics of Tutorial 6:

Fiscal policy as a stabilization policy instrument.
Government expenditure and tax revenue.
Expansionary, contractionary and neutral fiscal policy.
Exogenous taxes, endogenous taxes and the multiplier.
The balanced budget.
Government deficits and net debt.
Discretionary fiscal policy. Automatic stabilizers.
Structural and cyclical budget balances.
Sustainable fiscal policy.

Cluster 2 includes out of 15 tutorials in "Macroeconomic Models". The tutorials present macroeconomic models in a fabulous new, innovative and interactive design. The tutorials animated graphics with voice over goes beyond the static texts and graphics of traditional textbooks and e-books and introduce a wholly new and dynamic approach to learning economics.

The tutorials clarity and focused structure supported by case studies and an interactive design facilitates the understanding of macroeconomic models and their application to reality.

Macroeconomic Models lets you review a particular model in about 15 minutes or the main models of most P-of-M courses in less than 4 hours - on your iPad wherever and whenever you wish.

Each of the 15 tutorials includes a glossary of macroeconomic terms and concepts.

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