Intermediate macroeconomics day-1

Intermediate Intermediate MacroeconomicsMacroeconomics

Dr. Andrew L. H. ParkesDr. Andrew L. H. Parkes““A Macroeconomic Understanding for use in Business”A Macroeconomic Understanding for use in Business”

卜安卜安吉吉

Intermediate Macroeconomics, Day 12

Syllabus and Our CourseSyllabus and Our Course The syllabus provides an The syllabus provides an

outline of what we will outline of what we will cover during the term: cover during the term: Chapters 1 through 11, as Chapters 1 through 11, as well as Chapters 13 and 14 well as Chapters 13 and 14 of the textbook.of the textbook.

This week we will talk This week we will talk about Chapters 1 and 2.about Chapters 1 and 2.

The required textbook


Lectures and Practice ProblemsLectures and Practice Problems Lectures:Lectures: 4 hours per week I will 4 hours per week I will

introduce the new material to you.introduce the new material to you. Practice Problems:Practice Problems: We will do We will do

assignments from my slides and from assignments from my slides and from the textbook.the textbook.

You will have to prepare assignments You will have to prepare assignments for every class; there is NO class for every class; there is NO class without without homework. homework.

You will do You will do all of your own workall of your own work during during the course. the course. Copied assignments will be Copied assignments will be given 0 marks.given 0 marks.

Notice you must have access to WSJ, FT Notice you must have access to WSJ, FT (also investopedia.com – Forbes, etc.).(also investopedia.com – Forbes, etc.).

Keep up to date withEconomics related issues

http://investopedia.com/


GradingGrading

Mid-term test - 20%Mid-term test - 20% Final ExamFinal Exam - 40% - 40% Homework Homework - 20% - 20% QuizzesQuizzes - 20% - 20%

Total Total - 100% - 100%


Intermediate MacroeconomicsIntermediate Macroeconomics (Ch. 1) (Ch. 1)

Nothing is required to Nothing is required to begin this course!begin this course!

Definitions: We know Definitions: We know MANY of these already!MANY of these already!

Real GDP, CPI, GDP Real GDP, CPI, GDP deflator, Unemployment deflator, Unemployment rate, …rate, …


SEE MY WEBSITE: SEE MY WEBSITE: andrewparkes.comandrewparkes.com

1.1. Often and regularlyOften and regularly2.2. Kept ahead of Kept ahead of

classclass3.3. Links and PPT Links and PPT 4.4. Other informationOther information

Like this =>Like this =>Total Public Debt Outstanding

$ 9,139,880,193,861.94 11/29/2007

$ 9,668,194,123,052.30 9/4/2008


Yuan trades at what rate today?Yuan trades at what rate today? See my website for articles we discuss!See my website for articles we discuss! Three Goals of any MACROECONOMYThree Goals of any MACROECONOMY

– Full Employment – Unemployment RateFull Employment – Unemployment Rate

– Economic Growth – REAL GDPEconomic Growth – REAL GDP

– Price Stability - CPIPrice Stability - CPI

– KNOW what real GDP and CPI meanKNOW what real GDP and CPI mean

– Quiz next class!!! – 5 ptsQuiz next class!!! – 5 pts


U. S. Real GDP 2000 - 2007U. S. Real GDP 2000 - 2007

Forecast 3rd Qtr. 5% growth 4th … .6%?


Prices Prices of Gross Domestic of Gross Domestic Purchases 2000 - 2007Purchases 2000 - 2007


KNOW WHO THE FED IS!?!KNOW WHO THE FED IS!?!

See my website if you need more info …See my website if you need more info …– PPT from week 2 or 3 IntroPPT from week 2 or 3 Intro– U.S. Macroeconomic SitesU.S. Macroeconomic Sites

People’s Bank of ChinaPeople’s Bank of China– Website is available from mineWebsite is available from mine– Know who they are and what they do!Know who they are and what they do!– These are the most important financial These are the most important financial

institutions in this class!institutions in this class!


Problem Set 1: CPI and GDP deflatorProblem Set 1: CPI and GDP deflator

CalculatioCalculation of Price n of Price IndicesIndices– PaaschePaasche– LaspeyreLaspeyre

s s

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Intermediate macroeconomics day-1