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1. Introduction to Macroeconomics(0)

Introduction to Economics
(0)

Three Key Economic Ideas
(0)

Productive and Allocative Efficiency
(0)

Factors of Production
(0)

Positive and Normative Statements
(0)

Circular Flow Diagram
(0)

Graphing Review
(0)

Percentage and Decimal Review
(0)

Fractions Review
(0)

2. Introductory Economic Models(0)

Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
(0)

PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency
(0)

PPF - Outward Shifts
(0)

PPF - Comparative Advantage and Absolute Advantage
(0)

PPF - Comparative Advantage and Trade
(0)

PPF - Price of the Trade
(0)

3. Supply and Demand(0)

Introduction to Supply and Demand
(0)

The Basics of Demand
(0)

Individual Demand and Market Demand
(0)

Shifting Demand
(0)

The Basics of Supply
(0)

Individual Supply and Market Supply
(0)

Shifting Supply
(0)

Overview of Supply and Demand Shifts
(0)

Supply and Demand Together: Equilibrium, Shortage, and Surplus
(0)

Supply and Demand Together: One-sided Shifts
(0)

Supply and Demand Together: Both Shift
(0)

Supply and Demand: Quantitative Analysis
(0)

4. Elasticity(0)

Percentage Change and Price Elasticity of Demand
(0)

Elasticity and the Midpoint Method
(0)

Price Elasticity of Demand on a Graph
(0)

Determinants of Price Elasticity of Demand
(0)

Total Revenue Test
(0)

Total Revenue Along a Linear Demand Curve
(0)

Income Elasticity of Demand
(0)

Cross-Price Elasticity of Demand
(0)

Price Elasticity of Supply
(0)

Price Elasticity of Supply on a Graph
(0)

Elasticity Summary
(0)

5. Consumer and Producer Surplus; Price Ceilings and Price Floors(0)

WIllingness to Pay and Consumer Surplus
(0)

Willingness to Sell and Producer Surplus
(0)

Economic Surplus and Efficiency
(0)

Quantitative Analysis of Consumer and Producer Surplus at Equilibrium
(0)

Price Ceilings, Price Floors, and Black Markets
(0)

Quantitative Analysis of Price Ceilings and Floors: Finding Points
(0)

Quantitative Analysis of Price Ceilings and Floors: Finding Areas
(0)

6. Introduction to Taxes(0)

Introducing Taxes and Tax Incidence
(0)

Effects of Taxes on a Market
(0)

Elasticity and Taxes
(0)

Subsidies
(0)

The Laffer Curve
(0)

Quantitative Analysis of Taxes
(0)

7. Externalities(0)

Externalities: Social Benefits and Social Costs
(0)

Public Solutions to Externalities
(0)

8. The Types of Goods(0)

Four Types of Goods and Two Characteristics
(0)

The Free Rider Problem and the Tragedy of the Commons
(0)

Public Goods: Demand Curve and Optimal Quantity
(0)

9. International Trade(0)

Exporting and Importing
(0)

Sources of Comparative Advantage
(0)

Tariffs on Imports
(0)

Import Quotas and VERs
(0)

Arguments Against International Trade
(0)

10. Introducing Economic Concepts(0)

Introducing Concepts - Business Cycle
(0)

Introducing Concepts - Nominal GDP and Real GDP
(0)

Introducing Concepts - Unemployment and Inflation
(0)

Introducing Concepts - Economic Growth
(0)

Introducing Concepts - Savings and Investment
(0)

Introducing Concepts - Trade Deficit and Surplus
(0)

Introducing Concepts - Monetary Policy and Fiscal Policy
(0)

11. Gross Domestic Product (GDP) and Consumer Price Index (CPI)(0)

Calculating GDP
(0)

Detailed Explanation of GDP Components
(0)

Value Added Method for Measuring GDP
(0)

Nominal GDP and Real GDP
(0)

Shortcomings of GDP
(0)

Calculating GDP Using the Income Approach
(0)

Other Measures of Total Production and Total Income
(0)

Consumer Price Index (CPI)
(0)

Using CPI to Adjust for Inflation
(0)

Problems with the Consumer Price Index (CPI)
(0)

12. Unemployment and Inflation(0)

Labor Force and Unemployment
(0)

Types of Unemployment
(0)

Labor Unions and Collective Bargaining
(0)

Unemployment: Minimum Wage Laws and Efficiency Wages
(0)

Nominal Interest, Real Interest, and the Fisher Equation
(0)

Nominal Income and Real Income
(0)

Who is Affected by Inflation?
(0)

Demand-Pull and Cost-Push Inflation
(0)

Costs of Inflation: Shoe-leather Costs and Menu Costs
(0)

13. Productivity and Economic Growth(0)

Productivity and the Per-Worker Production Function
(0)

Institutions that Promote Economic Growth
(0)

Growth Rates and the Rule of 70
(0)

New Growth Theory
(0)

PPF - Growth Analysis
(0)

Introducing Concepts - Business Cycle
(0)

Business Cycles and Their Characteristics
(0)

14. The Financial System(0)

Financial System Definitions
(0)

Savings Equal Investment
(0)

Market for Loanable Funds
(0)

Shifts in the Market for Loanable Funds
(0)

Stocks, Bonds, and Mutual Funds
(0)

Risk and Insurance
(0)

Risk and Diversification
(0)

Time Value of Money Calculations
(0)

Calculating Bond and Stock Prices
(0)

15. Income and Consumption(0)

The Consumption Function
(0)

The Saving Function
(0)

Determinants of Consumption and Saving
(0)

Average Propensity to Consume and Save
(0)

Multiplier Effect of Investment Spending
(0)

16. Deriving the Aggregate Expenditures Model(0)

Aggregate Expenditures Model and Macroeconomic Equilibrium
(0)

AE Model: Graphing Macroeconomic Equilibrium
(0)

AE Model: Private Closed Economy
(0)

AE Model: Private Open Economy
(0)

AE Model and the Multiplier
(0)

AE Model: Algebraic Approach
(0)

Deriving the Multiplier Algebraically
(0)

17. Aggregate Demand and Aggregate Supply Analysis(0)

Aggregate Demand
(0)

Deriving Aggregate Demand from the Aggregate Expenditure Model
(0)

Shifting Aggregate Demand
(0)

Long Run Aggregate Supply
(0)

Short Run Aggregate Supply
(0)

Shifting Short Run Aggregate Supply
(0)

AD-AS Model: Equilibrium in the Short Run and Long Run
(0)

AD-AS Model: Shifts in Aggregate Demand
(0)

18. The Monetary System(0)

The Functions of Money; The Kinds of Money
(0)

Defining the Money Supply: M1 and M2
(0)

Required Reserves and the Deposit Multiplier
(0)

Introduction to the Federal Reserve
(0)

The Federal Reserve and the Money Supply
(0)

History of the US Banking System
(0)

The Financial Crisis of 2007-2009 (The Great Recession)
(0)

19. Monetary Policy(0)

Goals of Monetary Policy
(0)

The Demand for Money
(0)

The Money Supply on the Graph
(0)

Monetary Policy and Aggregate Demand
(0)

Expansionary and Contractionary Monetary Policy
(0)

Taylor Rule
(0)

Quantity Theory of Money
(0)

Federal Reserve Policies during the 2007-2009 Recession
(0)

20. Fiscal Policy(0)

Introduction to Fiscal Policy
(0)

Expansionary and Contractionary Fiscal Policy
(0)

Government Purchases and the Multiplier Effect
(0)

Taxes, the Multiplier Effect, and Automatic Stabilizers
(0)

Long Run Effects of Fiscal Policy
(0)

Criticisms of Fiscal Policy
(0)

21. Revisiting Inflation, Unemployment, and Policy(0)

Short Run Phillips Curve
(0)

Long Run Phillips Curve
(0)

Phillips Curve and Expected Inflation
(0)

Phillips Curve and Supply Shocks
(0)

Sacrifice Ratio
(0)

Disinflation and Deflation
(0)

22. Balance of Payments(0)

Balance of Payments: Introduction
(0)

Balance of Payments: Current Account
(0)

Balance of Payments: Financial Account and Capital Account
(0)

Net Exports Equal Net Foreign Investment
(0)

Balance of Trade; Trade Deficit and Trade Surplus
(0)

23. Exchange Rates(0)

Exchange Rates: Introduction
(0)

Exchange Rates: Nominal and Real
(0)

Exchange Rates: Equilibrium
(0)

Exchange Rates: Shifts in Supply and Demand
(0)

Exchange Rates and Net Exports
(0)

Exchange Rates: Fixed, Flexible, and Managed Float
(0)

Exchange Rates: Purchasing Power Parity
(0)

The Gold Standard
(0)

The Bretton Woods System
(0)

24. Macroeconomic Schools of Thought(0)

Classical Model and Keynesian Model
(0)

Monetarist Model
(0)

Quantity Theory of Money
(0)

New Classical Model
(0)

Real Business Cycle Model
(0)

Austrian Model
(0)

Communism and Karl Marx
(0)

25. Dynamic AD/AS Model(0)

Dynamic AD-AS Model: Introduction
(0)

Dynamic AD-AS Model: Inflation and Recession
(0)

Dynamic AD-AS Model: Fiscal Policy
(0)

Dynamic AD-AS Model: Monetary Policy
(0)

26. Special Topics(0)

Industrially Advanced Countries (IACs) and Developing Countries (DVCs)
(0)

Developing Countries: Obstacles to Development
(0)

Vicious Circle of Poverty
(0)

16. Deriving the Aggregate Expenditures Model

AE Model: Private Closed Economy

16. Deriving the Aggregate Expenditures Model

AE Model: Private Closed Economy: Videos & Practice Problems

Video Lessons Practice Worksheet

AE Model: Private Closed Economy Practice Problems

20 problems

Problem 1Multiple Choice

What is a defining characteristic of a private closed economy?

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Problem 2Multiple Choice

In a private closed economy, what condition must be met for macroeconomic equilibrium to occur?

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Problem 3Multiple Choice

If consumption is \$200 billion and investment is \$50 billion in a private closed economy, what is the total aggregate expenditure?

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Problem 4Multiple Choice

What does the base level of consumption represent in the consumption function?

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Problem 5Multiple Choice

If the marginal propensity to consume (MPC) is 0.6, how will a \$100 increase in GDP affect consumption?

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Problem 6Multiple Choice

Where does macroeconomic equilibrium occur on the aggregate expenditures model graph?

Problem 7Multiple Choice

If the consumption function is C = 50 + 0.8Y and investment is 30, what is the equilibrium level of GDP?

Problem 8Multiple Choice

If investment increases by \$20 billion in a private closed economy, how will this affect the aggregate expenditures line?

Problem 9Multiple Choice

What is the primary implication of removing government purchases and net exports from the aggregate expenditures model?

Problem 10Multiple Choice

In a private closed economy, if the consumption function is C = 100 + 0.75Y and investment is 50, what is the equilibrium GDP?

Problem 11Multiple Choice

Which of the following is NOT a feature of a private closed economy?

Problem 12Multiple Choice

In a private closed economy, what happens when aggregate expenditures exceed GDP?

Problem 13Multiple Choice

If the consumption function is C = 80 + 0.7Y and investment is 40, what is the total aggregate expenditure when GDP is 200?

Problem 14Multiple Choice

What role does the marginal propensity to consume (MPC) play in the consumption function?

Problem 15Multiple Choice

If the base level of consumption is \$50 billion and the MPC is 0.4, what is the consumption level when GDP is \$200 billion?

Problem 16Multiple Choice

Why is the 45-degree line important in the aggregate expenditures model?

Problem 17Multiple Choice

Given the consumption function C = 60 + 0.9Y and investment of 20, what is the equilibrium GDP?

Problem 18Multiple Choice

If the base level of consumption increases by \$10 billion, how will this affect the aggregate expenditures line?

Problem 19Multiple Choice

How does the removal of government purchases and net exports simplify the aggregate expenditures model?

Problem 20Multiple Choice

In a private closed economy, if the consumption function is C = 90 + 0.6Y and investment is 60, what is the equilibrium GDP?

AE Model: Graphing Macroeconomic Equilibrium Practice Problems AE Model: Private Open Economy Practice Problems

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