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Macro 13

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Gale Pooley
Gale Pooley

Macro 13

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Lecture 13 Macroeconomics
Opening Prayer
Quiz Master
Record
Analytical Steps Event Which Curve? AD or AS Which Direction? Left or Right Consequence for Inflation and GDP If AS, then one step If AD, then two steps
AD Real GDP Growth Rate Inflation Rate π LRAS SRAS
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
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 AD Real GDP Growth Rate Inflation Rate π LRAS SRAS
Aggregate Demand Curve Consumer Spending Investment Spending Money Supply
Chapter 14 Transmission and Amplification
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

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