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Theme 11. Macroeconomic equilibrium




(1 hour)


The seminars


The purpose of the lesson:

- To study the factors affecting the dynamics of aggregate demand and aggregate supply

- Review the macroeconomic equilibrium in the model of "AD-AS"


Topics for discussion:

1. Aggregate demand, price and non-price factors that affect the dynamics of aggregate demand.

2. Aggregate supply, price and non-price factors that affect the dynamics of aggregate supply.

3. General model of macroeconomic equilibrium.


Questions and tasks:

1. Initially, the economy was in a state of full employment, potential GDP was 3,000 billion AD curve equation is of the form y = 3980 - 700 R. The fall in investment demand curve shifted the AD so that in the short run equilibrium GDP was 2,860 billion. What will be in this case, the coordinates of the equilibrium in the long run?

2. Economy, originally located at potential output, experienced negative supply shock, in which the price level rose by 10%. The original equation is of the form AD curve Y = 2500 - 250r. Potential GDP is 2000 billion dollars What are the coordinates of the short-term equilibrium in the economy, established after shock?

 

True / false.

3. Wealth effect, the effect of foreign purchases and the effect of interest rate changes explain the aggregate demand curve.

4. Inflation expectations encourage people to increase consumer spending in this period, which is reflected in the shift the aggregate demand curve to the right.

5. Increase in oil prices leads to a reduction in aggregate supply and reflected a shift left / up curve AS.

6. The increase in the velocity of money in the economy will be reflected graphically right shift of the demand curve aggregate supply.

7. In the long-run output in the economy is determined by the stock of capital, labor and the level of technology.


Independent work of the student

Questions for self-study:

1. Disequilibrium in the model «AD-AS».

2. Effect of changes in aggregate demand and aggregate supply to the dynamics of real GDP and the price level.


Form of control:

- To discuss


Theme 12. Cyclical nature of economic development as a pattern of macroeconomics. Economic growth.
(1 hour)


The seminars

The purpose of the lesson:

- Consider the major phases of the economic cycle.

- Study factors and types of economic growth


Topics for discussion:

1. Business cycle: causes and characteristics of its main phases.
2. Main indicators of economic conditions and their dynamics

Questions and tasks:

1. Right - wrong:

a. Gross investment grow if the growth rate of sales of goods falling.
b. Recovery phase of the business cycle is always equal to the period of recovery.
c. Investment in machinery and equipment generally does not increase to a crisis and beyond.


2. Activation of the human factor

With technological revolution a tendency to reduce the dependence of economic results of the number of employed living labor

How to understand the following questions:

a) Increase or decrease the role of man in the modern production?
b) What is being done in practice for the development of the activity of workers?

3. The purpose and the sources of economic growth of the nation.
When considering the growth in the company, it was found that the private owner of capital by seeking savings (expansion) to maximize the profit increase. However, if such a goal will be the main goal of the nation, it is obvious that most enriched relatively small part of the company (about 10 - 15% of the adult population) by others. The efforts of the social stratification of society, with the risk of conflicts between the different income level layers. Obviously, the optimal (best) to economic growth is to increase the standard of living of the population.

Questions:

a) What is the source of economic growth of the nation?
b) What is the economic indicator most closely matches the optimal goal of national economic growth?


4. Types of intensification of production.

Intensification based on a more cost-effective use of factors of production, which is the result of scientific and technical progress.
Identify the types of intensification of production that take place depending on the economy of different types of economic resources.





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