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<langstring xml:lang="enUS">WinEcon  Introduction to Macroeconomics</langstring>
A fullyinteractive introduction to the principles of macroeconomics.
Interactive macroeconomics course
WinEcon  Introduction to Macroeconomics

What is Economics

Introduction to Economics

Introduction

Introduction to Economics

The Economic Approach  Rationality

Objectives and Actions: The Squash Club

Objectives and Actions: Allocating a Health Budget

Objectives and Actions: Looking Ahead

Economic Modelling

Summary

Macroeconomic Data

Introduction to Macroeconomic Data

Introduction

Macroeconomic Variables

Introduction

Trended and NonTrended Variables

The Behaviour of Real and Nominal Variables

Nominal and Real Interest Rates

Positive and Negative Real Interest Rates

Real Interest Rates in Various Countries

Hyperinflations

Fitting Linear Trends

Trends in Levels and Logarithms

Deviations from Linear and LogLinear Trends

Linear Trends with Constant Growth

Annual Real GDP Growth Rates

Quarterly GDP Growth Rates

Summary

Measuring Macroeconomic Variables

Introduction

Measuring the Price Level and Inflation

Calculating the GDP Deflator

The Balance of Payments

Devaluation and the Balance of Payments

Summary

Interactions Between Macroeconomic Variables

Introduction

Comovements with GDP Growth

Lead and Lag Comovements

Inflation over the Business Cycle

Money Supply and Inflation

International Comovements

Summary

National Income Accounting

Introduction to National Income Accounting

Introduction

Defining Output

Introduction

Potential Pitfalls in Measuring Productive Activity

Transfer Payments

Double Counting  a Potential Error

Double Counting  Avoiding the Problem

Summary

Developing an Accounting Framework

Introduction

Developing an Accounting Framework

The Household Sector

The Productive Sector

The Circular Flow of Income

Investment and Saving

Why Saving Equals Investment

The Inclusion of Government

Injections Equal Withdrawals

The Foreign Sector

The Injections Equal Withdrawals (Again)

Summary

The Measurement of GDP in Practice

Introduction

Real and Nominal GDP

The Output Approach

GVA in Current Prices

Output by Sector

The Expenditure Approach

Composition of Expenditure

The Income Approach

GDP by Income Type

Summary

GNI, NNI and Economic Welfare

Introduction

GNI and NNI

GDP and Economic Welfare

Summary

Summary of National Income Accounting

Summary

Income Expenditure Model

Introduction to the Income Expenditure Model

Introduction

Circular Flow of Income and Expenditure

Introduction

Basic Concepts: Firms and Households

Basic Concepts: Aggregate Markets

The Simple Circular Flow of Income and Expenditure

The Full Circular Flow of Income and Expenditure

Accounting Identities in the Circular Flow

Planned Versus Actual Flows

Summary

The Household Sector

Introduction

The Consumption Function

Consumption and Income in Selected Countries

Marginal Propensities to Consume and Save

Average Propensity to Consume

The Consumption Function Diagram

Consumption, Taxation and Saving

Taxation

Saving

Summary

The Firms Sector and the Goods Market

Introduction

Aggregate Demand in the Goods Market

Constructing the Aggregate Demand Function

The Firms Sector

Aggregate Supply: Equation & Diagram

Summary

Equilibrium in the Goods Market

Introduction

Goods Market Equilibrium

Keynesian Cross Diagram

The Formal Model: Equations & Solutions

Solution Method 1: Aggregate Demand equals Aggregate Output/Income

Introduction to Solution Method Two

Solution Method 2: Planned Withdrawals equals Planned Injections

Equilibrium Values for Other Variables

Formal Model: Diagrams

Summary

Exogenous Changes in Aggregate Demand

Introduction

A Change in Injections

A Change in Injections: a numerical example

The Multiplier

The Size of the Multiplier

Equilibrium Values and Exogenous Changes

The Multiplier: Withdrawals/Injections

Summary

Policy Implications of the Model

Introduction

Unemployment and Macroeconomic Policy

Equilibrium and Full Employment

Policy Implications: A Few Cautions

Summary

Money Supply and Demand

Introduction to Money

Introduction

Money Supply and Demand: Introduction

Functions of Money

Summary

Money Supply

Introduction

The Money Stock: Aggregate Measures

Flows of Funds Accounts

Assets and Liabilities

Financial Accounts and the Flows of Funds

The Banking System: The Role of the Central Bank

The Banking System: The Other Banks

NonBank Financial Institutions (NBFI's)

The Banking System

Banking Operations

A Multi Bank System

Loans and the Banking System

The Minimum Reserve Ratio

Loan Expansion and the Bank Deposit Multiplier

Summary

Monetary Control

Introduction

Control of the Money Supply

Exogenous and Endogenous Money

Bills and Bonds

Open Market Operations: In Theory

Open Market Operations: In UK Practice

Open Market Sales and Banks' Responses

Other Monetary Control Measures

Interest Rate Control Methods

Summary

Classical Theory of Money Demand

Introduction

Money Supply and Demand: Theoretical Approaches

The Classical Quantity Theory of Money

The Cambridge Version of Quantity Theory of Money

The Classical Loanable Funds Market

Summary

Keynesian Theory of Demand for Money

Introduction

Keynesian Theory of Money Demand

The Transactions Demand for Money

The Speculative Demand for Money

The Total Demand for Money Function

The Money Market and Equilibrium Interest Rate

Exogenous Changes and their Money Market Effects

The LM Curve and Equation

LM Curve: Graphical Derivation

LM Curve and Equation: Exogenous Changes

LM Curve: Equation Derivation

Summary

Monetarist Theory

Introduction

Friedman's Theory of Money Demand

Monetarism  The General Approach

Money, Price Level and Output: Debates on Causality

Empirical Evidence on the Money Demand Function

Summary

Summary of Money Supply and Demand

Introduction

Reconciling Money Flows and Money Stocks

Money Supply and Demand: Review

Summary

Theories of Aggregate Demand

Introduction to Aggregate Demand

Introduction

Theories of Aggregate Demand

Classical / Monetarist Aggregate Demand

Introduction

The Quantity Theory of Money

The Quantity Theory and Aggregate Demand

The Monetarist Transmission Mechanism

Policy Implications

Summary

Classical / Monetarist Open Economy

Introduction

International Trade: An Example

Fixed Exchange Rates

Flexible Exchange Rates

Summary: Trade and Exchange Rates

Summary

Keynesian Aggregate Demand

Introduction

Introduction: Keynesian Aggregate Demand

Consumer Demand and Disposable Income

Consumer Demand and the Rate of Interest

The Consumption Demand Function

The Investment Decision and the Rate of Interest

Investment Demand and the Rate of Interest

Investment Demand and Aggregate Output/Income

The Investment Demand Function

The IS Equation and Curve: Graphical Approach

Changes in Injections and Withdrawals

The IS Equation and Curve: Equation Approach

The IS Curve and Aggregate Demand

The ISLM Analysis and Aggregate Demand

Real  Financial Sector Interactions

Joint Equilibrium of Goods and Money Markets

ISLM Equilibrium

Exogenous Changes in the ISLM Model

Relative Effects of Exogenous Changes

ISLM Models

Policy Implications of the ISLM Theory

Keynesian Aggregate Demand and the Price Level

Summary

Keynesian Open Economy

Introduction

The BP Curve

ISLMBP Analysis with Fixed Exchange Rates

ISLMBP Analysis: Exchange Rate Changes

ISLMBP Analysis with Flexible Exchange Rates

Exogenous Changes: Fixed Exchange Rates

Exogenous Changes: Flexible Exchange Rates

Summary

Neoclassical Aggregate Demand

Introduction

Neoclassical Theory of Consumer Expenditure

The Permanent Income Hypothesis

The Life Cycle Hypothesis

Neoclassical Consumption Theories

Real Balance Effects in Aggregate Demand

Aggregate Demand as a Function of the Price Level

The Neoclassical Synthesis

Criticisms of the Neoclassical Synthesis

Summary

Theories of Aggregate Supply

Introduction to Theories of Aggregate Supply

Introduction

Basic Tools for Aggregate Supply

Introduction

The Aggregate Production Function

The Aggregate Demand for Labour

Labour Supply and Unemployment

Summary

The Classical Theory of Aggregate Supply

Introduction

Classical Aggregate Supply at a Glance

Classical Labour Supply Theory

Are You Prone to Money Illusion?

Classical Model: Employment Determination

The Classical Aggregate Supply Curve

AS Curve Shifts: Technology Shocks

AS Curve Shifts: Income Tax Changes

Unemployment in the Classical Model

Classical Aggregate Supply: A Summary

Summary

Keynesian Theory of Aggregate Supply

Introduction

Keynesian Aggregate Supply at a Glance

Keynesian Theory of Labour Supply

Keynesian Model: Employment Determination

The Keynesian Aggregate Supply Curve

Unemployment in the Keynesian Model

Keynesian Aggregate Supply: A Summary

Summary

The Monetarist Model of Aggregate Supply

Introduction

Monetarist Aggregate Supply at a Glance

Monetarist Theory of Labour Supply

Monetarist Model: Employment Determination

The Monetarist Aggregate Supply Curve

Unemployment in the Monetarist Model

Logarithms and Growth Rates: A Review

The Phillips Curve

Monetarist Aggregate Supply: A Summary

Summary

Monetary and Fiscal Policies

Introduction to Fiscal and Monetary Policy in Closed and Open Economies

Introduction

Macroeconomic Policy and AggregateDemand

Introduction

Fiscal Policy and Crowding Out

Recap on the Slope of the IS Curve

Recap on the Slope of the LM Curve

The Effectiveness of Fiscal Policy

Fiscal Policy Exercise  Introduction

Fiscal Policy Exercise

Fiscal Policy Exercise Solutions

Monetary Policy

The Effectiveness of Monetary Policy

Monetary Policy Exercise  Introduction

Monetary Policy Exercise

Monetary Policy Exercise Solutions

Summary

Fiscal and Monetary Policy in the ASAD framework

Introduction

Keynes Versus the Classics

Fiscal Policy Under Flexible Prices

Monetary Policy Under Flexible Prices

ASAD Fiscal Policy Exercise  Introduction

ASAD: Fiscal Policy Exercise

ASAD: Fiscal Policy Solutions

Summary

Policy in the Open Economy

Introduction

The ISLMBP Framework

Policy Effectiveness in the Open Economy

Fiscal Policy in a Fixed Exchange Rate Regime

Monetary Policy in a Fixed Exchange Rate Regime

Fiscal Policy Under Flexible Exchange Rates

Monetary Policy Under Flexible Exchange Rates

Policy Exercise

Summary

The Monetarist Critique of Active Stabilisation Policy

Introduction

The Natural Rate Hypothesis

Policy Timing and Magnitude

The Timing of Policy Changes

Timing and Magnitude

The Political Angle

Summary

Monetary and Fiscal Policy in Open and Closed Economies

Summary

Macroeconomic Fluctuations

Macroeconomic Fluctuations: An Introduction

Introduction

Concepts and Definitions

Introduction

Measuring a Cycle

Cycles Terminology

An Actual Cycle

Aggregate Demand and Supply Shocks

Shocks and Persistence

Effects of Shocks and Persistence

Summary

Macroeconomic Theories of Fluctuations

Introduction

Theories of Cycles: Overview

Classical Model: AD Shock

Classical Model: AS Shock

Stabilising Prices in the Classical Model

Keynesian Model: AD Shock

Keynesian Model: AS Shock

Monetarist Model: AD Shock

Monetarist Model: AD Shocks

Monetarist Model: AS Shock

Monetarist Model: AS Shocks

Summary

Introductory Mathematics for Economists

Introductory Mathematics for Economists

Introduction

About Introductory Mathematics for Economists

The Basics

Introduction

Variables and Functions

Fractions and Sharing

Basic Rules of Algebra

Coordinates and Graphs

Powers and Indices

Economic Problems  Basic Mathematics

Summary of the Basics

Equations

Introduction

Transposition

Linear Equations

Quadratic Equations

Simultaneous Equations

Exponential Functions

Logarithmic Functions

Economic Problems  Equations

Summary of Equations

Sequences and Series

Introduction

Sequences and Series

Present Value & Cash Flow

Economic Problems  Sequences

Summary  Sequence & Series

Summary for Introductory Mathematics for Economists

Summary

Intermediate Mathematics for Economists

Intermediate Mathematics for Economists

Introduction

About Intermediate Mathematics for Economics

Differentiation in Economics

Introduction

Why Economists use Differentiation

The Basic Rules of Differentiation

Worked Examples

A Summary of The Basic Rules of Differentiation

Practice Differentiation

Example One  Utility Functions

Example Two  Revenue Functions

Example Three  Cost Functions

Maximum & Minimum Values

Introduction

Identifying Maximum & Minimum Values

Checking for Maximum or Minimum Turning points

Rules for Finding a Maximum or Minimum

What Happens at a Maximum?

Example One  Maximum Profit

Example Two  Minimum Average Cost

Product, Quotient & Chain Rules

Introduction

The Product Rule

The Quotient Rule

The Chain Rule

Further Rules of Differentiation  A Summary

Example One  Marginal Revenue (Product Rule)

Partial Differentiation

Introduction

Marginal Product of Labour and Capital

Practice Partial Differentiation

Maxima/Minima of Multivariate Functions

Introduction

Optimisation of Multivariate Functions

Maxima/Minima Subject to a Constraint

Introduction

Constrained Optimisation

The Substitution Method

The Lagrange Multiplier Method

Differentiation of Log/Exponential Functions

Introduction

Natural Logarithmic & Exponential Functions

Rules for Differentiation of Logs/Exponentials

Practise Differentiating Logs/Exponentials

Summary for Intermediate Mathematics for Economists

Summary

Probability for Economists

Elementary Probability

Introduction

Sets

Probability: Outcomes, Events & Sample Spaces

Definition of Probability: The Probability Postulates

Probability Calculator

Throwing Two Coins: How Many Heads?

Summary

Elementary Statistics

Introduction

Grouped Data

The Mean

The Mode

The Median of Raw Ungrouped Data

The Median: Grouped Data

Mean, Mode, Median and Symmetry

Summary

Discrete Distributions

Introduction

Binomial Distribution

Poisson Distribution

Summary

Continuous Distributions

Introduction

Normal Distribution

Summary

Central Limit Theorem

Introduction

Central Limit Theorem

Summary

Statistics for Economists

Correlation Coefficient

Introduction

How To Get More Information (in this chapter)

Correlation Coefficient

Summary

Simple Regression

Introduction

Fitting a Line to the Data

Linear Regression (or Fitting a Line to the Data)

Linear Regression

Summary

Multiple Regression

Introduction

Multiple Linear Regression

Multiple Linear Regression Analysis

Chisquared Test for Normality of Residuals

FTest

ttest

Regression: Analysis of Variance

The Analysis of Variance

Multiple Regression As A Sequence of Simple Regressions

Summary

Analysis of Variance

Introduction

Analysis of Variance

Summary

Dummy Variables

Introduction

Dummy Variables

Summary

Time Series Analysis

Introduction

Time Series Analysis: Moving Averages

Time Series Analysis

Summary