Unit 3
Macroeconomics
Select a topic to view class notes, key terms, worked examples and practice questions.
3.1
Measuring Economic Activity
GDP, GNI, real vs nominal, per capita, the business cycle, and alternative measures of well-being.
3.2
Aggregate Demand and Supply
AD curve, components of AD, SRAS and LRAS, Keynesian AS, macroeconomic equilibrium.
3.3
Macroeconomic Objectives
Economic growth, unemployment, inflation, deflation, government debt, and trade-offs between objectives.
3.4
Economics of Inequality and Poverty
Lorenz curve, Gini coefficient, poverty, causes of inequality, taxation, and redistribution policies.
3.5
Monetary Policy
Central bank tools, interest rates, money creation, expansionary and contractionary monetary policy.
3.6
Fiscal Policy
Government revenue and expenditure, Keynesian multiplier (HL), effectiveness and constraints.
3.7
Supply-side Policies
Market-based and interventionist supply-side policies — goals, tools, and effectiveness.