Slide 1Aggregate demand and aggregate supply model A model that explains short-run fluctuations in real GDP and the price level. Slide 2 Aggregate Demand GDP has four components:…

Slide 1 Macroeconomic Policy in an Open Economy © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for…

Slide 1 The Federal Government Taxes, Spending, and National Debt Slide 2 I. What is the role of the government in free enterprise economies? A.To enforce private property…

Slide 1 IS-LM-BP The Basic Model of Open Economy Macro Slide 2 INTRODUCTION Earlier we identified a role for fiscal policy: stabilising Output near the full capacity or “natural”…

Slide 1 Fiscal policy Changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives Fiscal Policy: Congress & President (Treasury/OMB)…

Slide 1 Macroeconomics Slide 2 1. Circular flow – the movement of output and income from one sector of the economy to another Slide 3 Aggregate demand is the total demand…

Slide 1 Chapter 15: Fiscal Policy © 2008 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e. 1 of 46 Fiscal policy Changes in federal…

Government and the Economy Role of Government Money and Banking The Federal Reserve Government Finance Role The Role of Government Private businesses create private goods-…

* Lecture 17: The IS/LM Model (1) Based Primarily on Mankiw Chapter 10 * Introduction & Learning Objectives Today we will derive an IS curve and examine what determines…

Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e. Monetary policy Actions the Federal Reserve takes to manage the money supply and interest rates. What Shifts the…