Introduction to Macroeconomics | 1 | Handout | 1 |

Fiscal and Monetary Policy | 1 | Handout | 1 |

Scarcity | 1 | Handout | 2 |

Principles of Macroeconomics | 2 | Handout | 3 |

Market Economy | 2 | Handout | 3 |

Invisible Hand | 2 | Handout | 3 |

Market Failure | 2 | Handout | 3 |

Standard of Living | 2 | Handout | 4 |

Economic Models | 3 | Handout | 7 |

Shifts in Equilibrium | 3 | Handout | 8 |

Endogenous and Exogenous Variables | 3 | Handout | 9 |

Flexible and Sticky Prices | 3 | Handout | 9 |

Gross Domestic Product (GDP) | 4 | Handout | 10 |

Circular Flow of Income | 4 | Handout | 10 |

Nominal vs Real GDP | 4 | Handout | 11 |

GDP Deflator and Inflation Rate | 5 | Handout | 12 |

Computation of Nominal and Real GDP | 5 | Handout | 12 |

Stocks vs Flows | 5 | Handout | 13 |

Durable and Non Durable Goods | 5 | Handout | 13 |

Consumer Price Index | 6 | Handout | 15 |

GDP Deflator | 6 | Handout | 17 |

Okun''s Law | 6 | Handout | 17 |

Components of Aggregate Demand | 9 | Handout | 22 |

The Loanable Fund Market | 9 | Handout | 23 |

Saving | 9 | Handout | 23 |

Interest Rates | 9 | Handout | 25 |

The Role of Government | 10 | Handout | 26 |

Classical Theory of Inflation | 10 | Handout | 27 |

Money | 10 | Handout | 28 |

Centeral Bank | 10 | Handout | 28 |

The Quantity Theory of Money | 10 | Handout | 28 |

Components of Money Supply | 11 | Handout | 30 |

Seiniorage | 11 | Handout | 32 |

The Fisher Effect | 11 | Handout | 32 |

Inflation and Interst Rates | 11 | Handout | 32 |

Money Demand and Interest Rate | 12 | Handout | 33 |

The Money Demand Function | 12 | Handout | 33 |

Expected Inflation | 12 | Handout | 34 |

Costs of Inflation | 13 | Handout | 35 |

Hyperinflation | 13 | Handout | 36 |

The Open Economy | 14 | Handout | 37 |

Classical Dichotomy | 14 | Handout | 37 |

Net Foreign Investment and Trade Balance | 14 | Handout | 38 |

Fiscal Policy at Home | 15 | Handout | 40 |

Fiscal Policy Abroad | 15 | Handout | 41 |

Exchange Rates | 15 | Handout | 42 |

Net exports function | 16 | Handout | 43 |

Determinates of Nominal Exchange Rates | 16 | Handout | 45 |

Purchasing Power Parity | 17 | Handout | 47 |

Philips Curve | 17 | Handout | 48 |

Public Policy and Job Search | 18 | Handout | 50 |

Wage Rigidity | 18 | Handout | 51 |

The Classical Macroeconomics Theory | 24 | Handout | 71 |

Aggregate Demand & Supply Analysis | 24 | Handout | 71 |

Demand Shocks | 25 | Handout | 75 |

Supply Shocks | 25 | Handout | 76 |

Stabilization Policy | 25 | Handout | 76 |

Keynesian Cross | 26 | Handout | 79 |

Multiplier | 26 | Handout | 81 |

IS Curve | 27 | Handout | 83 |

LM curve | 27 | Handout | 85 |

Policy Analysis with IS-LM Model | 28 | Handout | 87 |

IS shocks | 28 | Handout | 90 |

LM shocks | 28 | Handout | 90 |

Aggregate Demand curve | 29 | Handout | 91 |

The Sticky Price Model | 33 | Handout | 107 |

Philips Curve | 34 | Handout | 109 |

Sacrifice Ratio | 34 | Handout | 111 |

Expectations of Inflation | 34 | Handout | 112 |

Keynesian Consumption Function | 37 | Handout | 120 |

Secular Stagnation | 37 | Handout | 121 |

Fishers Intertemporal Choices | 37 | Handout | 122 |

Government Budget Constraints | 37 | Handout | 123 |

Consumers Preferences | 38 | Handout | 124 |

Optimization | 38 | Handout | 124 |

Interest rate effect on saving and consumption | 38 | Handout | 125 |

Life Cycle Hypothesis | 39 | Handout | 128 |

Permanent Income Hypothesis | 39 | Handout | 130 |

Random Walk Model | 39 | Handout | 130 |

Types of Investment Spending | 40 | Handout | 131 |

The Cost of Capital | 40 | Handout | 132 |

The Real Cost of Capital | 41 | Handout | 134 |

Investment Function | 41 | Handout | 134 |

Stock Market and Tobin''s q | 42 | Handout | 137 |

Residential Investment | 42 | Handout | 138 |

Inventory Investment | 43 | Handout | 139 |

Accelerator Model of Inventories | 43 | Handout | 139 |

Real Interest Rate & Inventories | 43 | Handout | 139 |

Money Supply | 44 | Handout | 140 |

100% Reserve Banking System | 44 | Handout | 140 |

Fractional Reserve Banking System | 44 | Handout | 140 |

Three Instruments of Money Supply | 45 | Handout | 141 |

Demand for Money | 45 | Handout | 141 |

Portfolio Theories of Money Demand | 45 | Handout | 141 |

Transaction Theories of Money Demand | 45 | Handout | 142 |

Baumol-Tobin Model of Cash Management | 45 | Handout | 142 |

A Model of Money Supply | 45 | Handout | 143 |