Sadly, Swedish statistician Hans Rosling has died of pancreatic cancer at the age of 68. He had a marvelous, funny, clear way of presenting data. We watched at least one of his TED talks in Macroeconomics.
Awesome money collage art by Mark Wagner, http://markwagnerinc.com/washington-at-large/
We can exchange goods and services by barter or through a medium of exchange, like money. So what makes something useful as money? Believe or not Tide detergent has been used as money. This week what makes money money. How to create money. And how to control the amount of money in an economy.
Before Next week:
— Finish your paper. Due by the beginning of class Thursday April 14. Hard copy or emailed is fine. Have someone read it for you. And go through the grading rubric to see what you would give yourself. Do this when you still have time to improve your paper!
Economists today are in a hot debate about the best way to model a national economy. You will be able to closely examine that debate in your college economics classes (what? Of course, you will take economics in college.) We are going to use one of the first, cleanest and still useful models – aggregate demand and aggregate supply. After this week you will be able to identify the causes of the recessions we looked at last week, how it played out through unemployment and inflation and possible solutions for different types of recessions.
Before next week:
— Complete Test 1. Will be collected at the beginning of class.
While macroeconomics is the study of a national economy it is based on what happens in market. Individual markets are understood by examining supply and demand curves and equilibrium price and quantity. Those darn graphs do not go away.
One the more important markets for a national economy is oil. Oil plays a part in the finding, refining, processing and then as an input into plastics, trucking, air travels among other products and as a complimentary good for autos.
Macroeconomics is the study of national economies. In microeconomics we looked at economic decision making by consumers and individual firms. Now we will measure the economic activity of all firms, all consumers and add government spending. We will consider economic health of a nation by measuring unemployment and inflation rates as well as debt levels and international trade.