Macro Learning Objectives for questions over Exam 1 Form A

 

PCM

 ECON 2301 MACROECONOMICS   

Chapter 8

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. The numbers in the list refer to the question number on Exam 2 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below.  A much better understanding can often be attained by working through the "active graphs" and "smart graphs" connected to many of these objectives in the online material.

 
    After reading Chapter 8, you should be able to:
  1. Discuss the differences and similarities between the macroeconomic Aggregate Supply/Aggregate Demand model and the microeconomic Supply/Demand model. (Section 8.1)
  2. Contrast the perspectives of classical economists to those of Keynesians. (Section 8.2)
  3. Same as above. (Section 8.2)
  4. Explain what the Aggregate Demand Curve is, why it slopes down and to the right, and what might cause it to shift. (Section 8.3)
  5. Describe the long-run aggregate supply curve and how full-employment output can change. (Section 8.3)
  6. Discuss long run macroeconomic equilibrium and price and wage stickiness in the short run. (Section 8.3)
  7. Explain the relationship between the Long Run Aggregate Supply curve, potential GDP, and actual GDP. (Section 8.4)
  8. Relate the difference between demand-side and supply-side inflation and deflation in the long run. (Section 8.5)
  9. Discuss the relationship between political views and Keynesian vs. Classical economic views. (Section 8.6)
  10. Interpret how the war against terrorism can cause both inflation and lower output, and ways in which these effects might be countered. (Section 8.7)