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CORE ECONOMICSAnalysis by Peggy Pride
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Bedford, Freeman & Worthmpride01@wisperhome.com
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A.P. Economics Course
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Macroeconomics
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ChapterPagesComments
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I. Basic Economic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8–12%)
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A. Scarcity, choice, and opportunity costs1pp.8, 10, 34-36, 42This unit is the same first unit in Micro
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B. Production possibilities curve2pp.32-36
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C. Comparative advantage, absolute advantage, specialization, and exchange 2pp.42-43, 546-547, 569-570, 645-646, 648
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D. Demand, supply, and market equilibrium
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1. Market equilibrium3pp.64-73,
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Shifts in D/S to change Equilibrium3pp. 68-73
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2. Determinants of supply and demand3pp. 52-56, 56-58, 61-62, 63Same Unit on Demand and Supply as Micro
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Define Demand3pp. 52-56
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Determinants of Demand3pp. 56-58
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Define Supply3pp, 60-61
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Determinant of Supply3pp. 61-62
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3. Price and quantity controls3pp, 59-59, 63
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Changes in P (Qd) vs. Change in D3pp. 58-59
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Changes in P (Qs) vs. Change in S3pp. 63
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4. Individual and market demand curves3pp.54-56
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E. Macroeconomic issues: business cycle, unemployment, inflation, growth 15pp.400-408
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II. Measurement of Economic Performance. . . . . . . . . . . . . . . . . . . . . . . . . . (12–16%)
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A. National income accounts
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1. Circular flow15pp.410-411
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2. Gross domestic product15pp.411-412
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3. Components of gross domestic productpp.412-417
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Expenditure Approach to GDP15pp. 412-414
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Income Approach to GDP15pp. 414-417
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4. Real versus nominal gross domestic product16pp. 433-435
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B. Inflation measurement and adjustment
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1. Price indices16pp.429-433
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2. Nominal and real values16pp.435
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3. Costs of inflation16pp.435-436
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C. Unemployment
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1. Definition and measurement16pp.440-441
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2. Types of unemployment16pp.443-444
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3. Natural rate of unemployment16pp.444
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III. National Income and Price Determination. . . . . . . . . . . . . . . . . . . . . . . . . (10–15%)
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A. Aggregate demand
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Downsloping Aggregate Demand curve19pp, 501-502
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1. Determinants of aggregate demand19pp.502-505
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2. Multiplier and crowding-out effects
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Multiplier18, 19pp. 485-488, 510-511
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Crowding out20pp. 537, 608-609Weak discussion and missing ideas.
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B. Aggregate supply
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1. Short-run and long-run analyses19pp.505-507
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2. Sticky versus flexible wages and pricesThe sticky vs flexible debate must include disuccsion
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Classical model 17pp. 455-460of the two models-Classical and Keynesian
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Keynesian model18pp. 474-463
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3. Determinants of aggregate supply19pp.507-509
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C. Macroeconomic equilibrium
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1. Real output and price level19pp.509-515
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2. Short and long run19pp.511-515
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3. Actual versus full-employment output18, 19pp. 492, 514-515
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4. Economic fluctuations19pp.511-514
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IV. Financial Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15–20%)
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A. Money, banking, and financial markets
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1. Definition of financial assets: money, stocks, bondspp.546-553
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Money and its functions21pp. 546-548
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Market for stocks and bonds21pp. 552-553
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2. Time value of money (present and future value)Only a few books cover this
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3. Measures of money supply21pp.548-550
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4. Banks and creation of money21pp.553-556
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5. Money demand21pp.550-553
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6. Money market21pp.550-552
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7. Loanable funds marketpp.458
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B. Central bank and control of the money supply
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1. Tools of central bank policy21pp.560-562
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2. Quantity theory of money22pp.569-572
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3. Real versus nominal interest ratesNo discussion found in text.
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V. Inflation, Unemployment, and Stabilization Policies . . . . . . . . . . . . . . . . . (20–30%)
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A. Fiscal and monetary policies
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Fiscal Policy—Discretionary20pp. 526-528
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Fiscal policy—Automatic stabilizers20pp. 536
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Expansionary and Contractionary Fiscal Policy20pp. 528-531
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Monetary Policy —Easy and Tight money22pp. 569No graphic demonstration of concept
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1. Demand-side effects20, 22pp.526-530 ,581-582, 585-587
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2. Supply-side effects20,22pp.531-536, 582-583, 585-587
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3. Policy mix22pp.584-589
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Classical transmission22pp. 570-572
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Keynesian transmission22pp. 573-575
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Monetarist transmission 22pp. 575-578
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4. Government deficits and debt
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Deficits and National Debt23pp. 598-600
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Approaches to Federal Finance23pp. 601-603
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Financing Debt23pp. 604-606
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B. Inflation and unemployment
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1. Types of inflationpp.428-436
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a. Demand-pull inflation19pp.512-514
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b. Cost-push inflation19pp.514-515
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2. The Phillips curve: short run versus long run24pp.621-626
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3. Role of expectations24pp. 629-634
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VI. Economic Growth and Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5–10%)
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Measurement 17p. 453-455