Transcript Output, Unemployment, and Prices in US History

Chapter1
Thinking About Macroeconomics
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Output, Unemployment, and Prices in
U.S. History
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Output, Unemployment, and Prices in
U.S. History
• Growth rate of real GDP for year t=
(( Yt− Yt−1)/ Yt−1)− 1
– Multiply by 100 to get the growth rate of real
GDP in percent per year.
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Output, Unemployment, and Prices in
U.S. History
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Output, Unemployment, and Prices in
U.S. History
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Output, Unemployment, and Prices in
U.S. History
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Output, Unemployment, and Prices in
U.S. History
• Inflation rate for year t =
(( Pt− P t−1)/ Pt−1) − 1
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Output, Unemployment, and Prices in
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Economic Models
• Endogenous variables are the ones that
we want the model to explain.
• Exogenous variables are the ones that a
model takes as given and does not
attempt to explain.
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Economic Models
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Economic Models
The Coffee Market
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Economic Models
The Coffee Market
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Economic Models
The Coffee Market
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Economic Models
The Coffee Market
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Economic Models
The Coffee Market
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Economic Models
The Coffee Market
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Economic Models
• Disequilibrium a discrepancy between
the quantities of labor demanded and
supplied.
– New Keynesian model, argues that some
prices are sticky and move only slowly to
equate the quantities of goods demanded and
supplied.
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Economic Models
• Equilibrium business-cycle model basic market-clearing model of economic
fluctuations
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