Principles of Macroeconomics: study guide and practice
Also known as: econ 201, econ 2301, econ 2013, econ 101 macro, eco 2013, principles of macroeconomics, macroeconomics, intro to macroeconomics, macro econ, economics 1
What you will be able to do
- Measure national output with GDP and separate real from nominal changes
- Define unemployment types and calculate the unemployment rate
- Measure inflation and explain who gains and loses from it
- Use the aggregate demand and aggregate supply model to analyse booms and recessions
- Calculate spending multipliers and describe fiscal policy tools
- Explain how banks create money and how a central bank conducts monetary policy
- Explain comparative advantage, trade and exchange rates
- Explain the sources of long-run growth and productivity
Topics
- GDP and economic growthHow national output is measured, why real GDP matters, and how growth compounds.
- UnemploymentWho counts as unemployed, how the rate is calculated, and the types and costs of unemployment.
- InflationMeasuring price changes with an index, real versus nominal values, and who gains or loses.
- Aggregate demand and supplyThe AD/AS model: what shifts each curve, short-run versus long-run equilibrium, and recessions.
- Fiscal policy and the multiplierGovernment spending and taxes as stabilisation tools, the spending multiplier, deficits and debt.
- Money, banking and monetary policyWhat money does, how banks create deposits, and how a central bank steers interest rates.
- International trade and exchange ratesComparative advantage, gains from trade, tariffs, and how exchange rates are set and read.
- Long-run growth and productivityWhere lasting growth in living standards comes from: productivity, capital, human capital, technology and institutions.