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Macro 13

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Gale Pooley
Gale Pooley

Macro 13

Economy & Finance
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Lecture 13 Macroeconomics
Two Supply Curves Long-Run Short-Run
Short-Run Supply Curve Adrenaline Give 110% Push to exceed normal capacity
Long Run Run out of Adrenaline Fall back to normal Cannot do 110% forever unless.....
Aggregate Supply Curve
Aggregate Demand Curve
π Y Quiz     ADAS Modeling Inflation Output Curve Direction Level Level 1. Good Weather 2. Slower Money Growth Rate 3. Lower Business Taxes 4. Decrease in Exports 5. New innovation 6. Lower electricity prices 7. Higher Personal Taxes 8. Earthquake Quiz
AD Real GDP Growth Rate Inflation Rate π LRAS SRAS
Exam 2 Bonus Movie Pad Man Innovation in India Thursday Room 115 7:00pm - 9:30pm
Little things can cause big things
Life is not linear Good Bad
Transmission and Amplifications Intertemporal Substitution Uncertainty and Irreversible Investments Labor Adjustment Costs Time Bunching Collateral Damage
Uncertainty and Irreversible Investments Bad news creates uncertainty uncertainty makes you wait Sunk Costs Cannot reverse
Labor Adjustment Costs Structural Unemployment What to do? Wait Move Retraining Costs
Time Bunching Everything at once Together Cities are economic clusters Seasons
Collateral Damage Skin-in-the-Game Name on the deed but the bank owns the house Owe more than I own Values fall, equity disappears
Macro 13

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