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February 28, 2008
Business Cycles
Posted by bparke at 08:55 PM | Comments (0)
February 26, 2008
Midterm 1 Answers
Posted by bparke at 08:56 PM | Comments (0)
February 21, 2008
Fiscal Policy with Flexible Prices
Posted by bparke at 09:00 PM | Comments (0)
February 19, 2008
Midterm 1
Posted by bparke at 08:59 PM | Comments (0)
February 14, 2008
Exam Prep
We discussed how to take economics exams and how to prepare for the first midterm on Tuesday.
We also discussed the unemployment rate handout.
Posted by bparke at 05:38 PM | Comments (0)
February 12, 2008
The IS/LM Model - Policy Analysis
With the complete IS/LM Model (assuming fixed prices), we can analyze the recent tax rebate and the recent monetary policy to lower interest rates.
Posted by bparke at 09:58 PM | Comments (0)
February 07, 2008
The LM Curve
The Classical Model considers the demand for money in the sense that the demand is a rigid function of transactions. That is, k is fixed.
We might think about how we derive the demand for other things.
We, however, have agreed that simply putting money in the utility function does not explain the special role of money in facilitating transactions.
The famous "sawtooth" diagram is a charming parable that explains why the transactions demand for money depends on the interest rate.
Armed with this new demand for money, we can derive the LM Curve.
Posted by bparke at 09:45 PM | Comments (0)
February 05, 2008
The IS Curve & The IS-MP Model
Two ways to tell a supply and demand story illustrate why we sometimes prefer a particular view of a model.
Deriving the IS Curve the hard way:
Derivingthe IS Curve with a more clarity:
Posted by bparke at 05:36 PM | Comments (0)