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Macroeconomics Winter 2020
2008 2018
In an information age,
economies can change
as fast as minds can
change
95% of Revenue from
Advertising
Selling your time and
attention to advertisers
The Two Problems of
Macroeconomics
Unemployment
Inflation
Two Supply Curves
Long-Run
Short-Run
Chapter 15
Central Banks
Money Supplies
Fractional Reserve Banking
Reserve Ratio - Money Multiplier
Monetary Tools
Systemic Risks
Control
AD-AS Model
Jerome Powell
Chairman
Federal Reserve
Bank
Who is the
chairman of the
central bank in
your country?
AD
Real GDP Growth Rate
Inflation
Rate
π
LRAS
SRAS
Recession
Inflation
Negative Positive
Shift Left Shift Right
Aggregate
Supply
Curve
Bad weather Good weather
Higher oil price Lower Oil Price
Tech slump Tech boom
Higher business taxes or regulations Lower business taxes or regulation
War, Earthquake, Pandemic Smooth production
Aggregate
Demand
Curve
Slower Money Supply Growth Faster money Supply Growth
Fear Confidence
Reduced Wealth Increased Wealth
Higher Personal Taxes Lower Personal Taxes
Lower Government Spending Higher Government Spending
Decreased Export Growth Increased Export Growth
Increased Import Growth Decreased Import Growth
Negative Positive
Shift Left Shift Right
Aggregate
Supply
Curve
Bad weather Good weather
Higher oil price Lower Oil Price
Tech slump Tech boom
Higher business taxes or regulations Lower business taxes or regulation
War, Earthquake, Pandemic Smooth production
Aggregate
Demand
Curve
Slower Money Supply Growth Faster money Supply Growth
Fear Confidence
Reduced Wealth Increased Wealth
Higher Personal Taxes Lower Personal Taxes
Lower Government Spending Higher Government Spending
Decreased Export Growth Increased Export Growth
Increased Import Growth Decreased Import Growth
Federal Reserve Bank - FED
Money
Supply
U.S.
Treasury
Banks
Payment
System
Money Supply Tools
Excess
Reserves
Rate
Open
Market
Operations
Discount
Rate
Reserve
Ratio
Central Bank
Recession
Unemployment
Inflation

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