By the end of this section, you will be able to:
Explain the Keynesian perspective on market forces
Analyze the role of government policy in economic management
By the end of this section, you will be able to:
Explain the Phillips curve, noting its impact on the theories of Keynesian economics
Graph a Phillips curve
Identify factors that cause the instability of the Phillips curve
Analyze the Keynesian policy for reducing unemployment and inflation
By the end of this section, you will be able to:
Contrast nominal GDP and real GDP
Explain GDP deflator
Calculate real GDP based on nominal GDP values
By the end of this section, you will be able to:
Explain how we can use GDP to compare the economic welfare of different nations
Calculate the conversion of GDP to a common currency by using exchange rates
Calculate GDP per capita using population data
By the end of this section, you will be able to:
Discuss how productivity influences the standard of living
Explain the limitations of GDP as a measure of the standard of living
Analyze the relationship between GDP data and fluctuations in the standard of living
By the end of this section, you will be able to:
Identify the components of GDP on the demand side and on the supply side
Evaluate how economists measure gross domestic product (GDP)
Contrast and calculate GDP, net exports, and net national product
By the end of this section, you will be able to:
Explain recessions, depressions, peaks, and troughs
Evaluate the importance of tracking real GDP over time
By the end of this section, you will be able to:
Evaluate how neoclassical economists and Keynesian economists react to recessions
Analyze the interrelationship between the neoclassical and Keynesian economic models
By the end of this section, you will be able to:
Explain the importance of potential GDP in the long run
Analyze the role of flexible prices
Interpret a neoclassical model of aggregate demand and aggregate supply
Evaluate different ways for measuring the speed of macroeconomic adjustment
By the end of this section, you will be able to:
Discuss why and how economists measure inflation expectations
Analyze the impacts of fiscal and monetary policy on aggregate supply and aggregate demand
Explain the neoclassical Phillips curve, noting its tradeoff between inflation and unemployment
Identify clear distinctions between neoclassical economics and Keynesian economics
By the end of this section, you will be able to:
Calculate the labor force participation rate and the unemployment rate
Explain hidden unemployment and what it means to be in or out of the labor force
Evaluate the collection and interpretation of unemployment data
By the end of this section, you will be able to:
Explain historical patterns of unemployment in the U.S.
Identify trends of unemployment based on demographics
Evaluate global unemployment rates
