Topic

We've now covered the three main issues of the macroeconomy. We have seen how economic growth (or not) is measured in terms of GDP and how unemployment and inflation, or deflation, can derail the growth of an economy.

Most of this week will be taken up by your second exam on Monday and it's review later in the week.

Then, we will begin our discussion on the aggregate expenditures model and aggregate demand and aggregate supply. The latter pertains to the model of the macro economy that helps us understand the influences on the components of GDP, as well as those on the all firms in the economy. This is the beginning to understanding how the economy works and the prescriptions available to heal an economy that is not experiencing stable growth.

Objectives

By the end of this week, you will be able to:

Differentiate between the short-run and long-run in the macroeconomy.
Articulate why the short-run aggregate supply curve slopes upward.
Identify the determinants of aggregate demand and aggregate supply.
Identify GDP gaps.

Weekly Schedule

Due date	Activity
	Read McConnell Chapters: The Aggregate Expenditures Model & Aggregate Demand and Aggregate Supply
Refer to Schedule	Assignment: Relevant Problem Set Questions
Monday, 4/3	Exam #2