Thursday, November 10, 2005

Thinking of what is taught in a Macro class

What do most Macroeconomics classes cover?

Here is a list of items that I believe every macroeconomics course should cover:

  • National Income Accounting

GDP vs GNP

No Double Counting
Income = Expenditure
GDP is a flow concept not a stock concept (this one is my own pet peeve)

  • The Real vs. Nominal Concepts (price levels)

  • Redistribution effects of inflation

  • Using the Aggregate supply Aggregate model

To explain change in output
To explain change in prices
Shapes of the aggregate supply and the policy implications

  • Money

Functions of money
Forms of money

  • Policy
  • Monetary
    Fractional Reserve banking
    The Fed
  • Fiscal
    Deficit
    1. crowding out
    Debt
    1. internal debt
    2. external debt
    3. redistribution effects of govt. debt
  • International (this one is new to me but I cover the following)

Exchange rates
Exports vs. Imports

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