We talked about purchasing power parity, the Big Mac index, how central banks can affect the exchange rates, pegging exchange rates and the current account deficit.
We went over exchange rates, who buys and sells foreign currency, and the difference between currency appreciation and depreciation. We also talked about supply and demand in foreign exchange markets. Purchasing power parity was covered.
We finished up monetary policy and went over how a central bank can effect an economy. We also examined the equation of exchange. We then started exchange rates.
We defined money and talked about how it is measured. We then talked about central banks and their roll in the economy. We also defined bonds and talked about how central banks create money.
We finished up talking about the AD-AS model and Professor Stevens went through a number of examples and took questions. They we started talking about money, banks, the role of the Federal Reserve, and monetary policy.
We completed the discussion on the multiplier. We then introduced the Philips Curve and discussed why we might think there is a trade off between unemployment and inflation as well as whether or not we actually see such a trade off in the data.
We went over a number of examples of how to use the ASAD model. We then introduced the multiplier. We defined it, talked about the logic behind it, and talked about how large it is likely to be.
We went over the aggregate demand, aggregate supply model. We covered why the aggregate demand curve slopes downward, why the long run aggregate supply curve is a vertical line, and why the short run aggregate supply curve is upward sloping. We also went over curve shifters and equilibrium.
We finished up inequality and started the aggregate demand, aggregate supply model. First we addressed causes of inequality and we talked about how to measure inequality. We also discussed the question of whether or not inequality affects economic growth. We went over some debates surrounding inequality and some of the causes of increased inequality. Then we stared the AD-AS model.
We finished up inflation by talking about the difference between expected and unexpected inflation, how you measure price changes with the CPI, the difference between the GDP deflator and the CPI, what a market basket is, and issues with bias in the CPI. Then we introduced inequality and talked about how to measure inequality.
We finished up unemployment and covered sticky wages, changes to the unemployment rate, types of unemployment, unemployment and the Great Recession, government policies and unemployment, and unemployment insurance. We then started on inflation, discussing what inflation is, why we care, and what a price index is.
Today we finished talked about economic growth and went over both convergence and how growth and debt are related. We then moved on to unemployment. We defined unemployment, talked about some basic unemployment facts, whether or not unemployment is an accurate measure, why unemployment exists, and how government policy can affect unemployment.
Today we continued our examination of GDP and economic growth. We learned to adjust GDP for changes in prices over time and and between countries. We also talked about how to measure economic growth and concluded with a discussion of what causes economic growth.
Today we went over what Gross Domestic Product (GDP) measures and how to calculate GDP. We also went over the GDP deflator. And we talked about how GDP can be used to measure economic growth.
Today's lecture continued to examine the model of supply and demand. The supply curve was looked at in more detail. Then the mechanisms of equilibrium in markets were addressed through the model, as well as the particulars of finding market equilibrium with supply and demand curves and how price and quantity are determined. Finally, the effects of both price ceilings and price floors were examined.
This lecture finished the section on production possibilities curves and budget constraints. It then started the supply and demand section by examining demand curves and demand curve shifters.
We went over the fundamental choice framework of microeconomics including consumer choice and budget constraints. We also examined trade offs and choice over time by looking at interest rates and compound interest. Finally, we addressed macro level trade offs by examining the Production Possibilities Frontier (PPF).
Lecture 1: We went over administrative details, production possibilities frontiers, budget constraints, specialization, and gains from trade.