Download Essential Understandings Economic Philosophies Basic concepts of

Essential Understandings
Economic Philosophies
Basic concepts of the philosophy
Classical Economics
Keynesian Economics
Supply Side
Monetarists
Rational Expectations
Nominal vs. Real
Provide examples of real variables
Provide examples of nominal variables
Formula for determining real variables
Formula for determining nominal variables
Long Term vs. Short term
Draw how long term equilibrium is shown on
an ADAS graph
Draw how short run equilibrium is shown on
an ADAS graph
Explain how monetary policy impacts ADAS in
the short run
Explain how monetary policy impacts ADAS in
the long run
Draw an ADAS graph showing how a short run
equilibrium in recession will go back to long
run without government intervention
Draw an ADAS graph showing how a short run
equilibrium with inflation will go back to long
run without government intervention
Explain the logic of the above graph
Explain the logic of the above graph
Draw a Phillips curve in long
run equilibrium
Draw a Phillips Curve in an
inflationary gap
Raw a Phillips curve in an
inflationary gap
Limits to Stats
Explain how the statistic may have limits as a gauge to
economic well- being
GDP
CPI
GDP Deflator
Unemployment rate
Benefits and limits to Monetary and Fiscal policy
Benefits of fiscal
policy
Limits of fiscal policy
Benefits of monetary
policy
Limits to monetary
policy
Aspects of Full Employment
Show full employment on a PPC
Interest Rates
Discuss the impact of interest rates on savings
Discuss the impact of interest rates on
investment
Discuss the impact of interest rates on the
demand for money (Theory of liquidity
preference)
Impact of interest rates on Money Supply?
Impact of interest rates on bond prices
Show full employment on an ADAS Graph
Discuss the Impact of savings on:
Loanable funds
Investment
Currency exchange
Long run output
Unanticipated inflation
Who wins?
Who loses?
Impact on the Phillips Curve?
Impact on purchasing power?
Impact on international trade?