Introduction 1
Economics as a Social Science 2
Microeconomics and Relative Prices 3
Macroeconomics and Policy 5
Lecture 2 -- Production and Production Possibilities
The Production Function 10
Production Possibilities 13
Worksheet #1 17
Comparative Advantage and Gains from Trade 19
Worksheet #2 22
Concepts for Review 24
Suggested Readings 24
Lecture 3 -- Markets and Equilibrium Analysis
Markets 25
Demand 29
Supply 30
Concepts for Review 33
Worksheet #3 34
Lecture 4 -- Measures of Economic Activity
National Income Accounting -- GDP 36
Real GDP and Business Cycles 41
Unemployment 42
Inflation and Inflationary Expectations 44
Worksheet #4 49
The Term and Risk Structure of Interest Rates 51
The Balance of Payments 53
Exchange Rates 55
Concepts for Review 59
Lecture 5 -- The Standard of Living and Economic Growth
Living Standards 60
Capital and a Nation’s Wealth 62
Concepts for Review 65</P>
<P>Lecture 6 -- The Real Economy and Aggregate Demand
Aggregate Demand 66
Savings and Investment 69
Worksheet #5 74
Aggregate Expenditure and Income Determination 76
Concepts for Review 79
Worksheet #6 80
Lecture 7 -- Financial Markets and Monetary Policy
Direct and Indirect Finance 82
Financial Instruments 83
Cash as a Financial Asset 88
The Money Supply Process 90
The Federal Reserve and Central Banking 93
Concepts for Review 96
Suggested Readings 96
Worksheet #7 97
Lecture 8 -- Aggregate Supply and Price Level Determination
Long Run Aggregate Supply 99
Price Level Determination 100
Labor Markets and the Price Level 101
Money and the Price Level 102
Concepts for Review 104
Lecture 9 -- Economic Policy
Macroeconomic Policy 105
Fiscal Policy 107
Monetary Policy 109
Supply-Side Policies 111
Concepts for Review 112
A Glossary of Macroeconomic Terms 113</P>
<FONT size=3> </FONT>