This is a JiTT exercise in which students apply introductory-level macroeconomic analysis to the question of how large the stimulus package put forward to Congress in early 2009 needed to be to close the recessionary gap facing the U.S. economy at that time. In particular, this exercise asks students to bring together the concepts of potential and actual GDP, recessionary gaps, fiscal policy, spending and taxing multipliers, and effects of changes in aggregate spending on employment and output.

Analyzing planned expenditures versus actual output using the Keynesian Cross. Created by Sal Khan.

More on shifting aggregate planned expenditures. Connecting to the multiplier. Created by Sal Khan.

How the theory of liquidity preference drives demand for money and the LM (liquidity preference-money supply) curve. Created by Sal Khan.

The law of demand states that as the price of a good decreases, the quantity demanded of that good increases. In other words, the law of demand states that the demand curve, as a function of price and quantity, is always downward sloping. In this video, we explore the law of demand and its implications for graphing demand curves. Created by Sal Khan.

In this video we explore the law of supply which states that quantity supplied increases as price increases. We use a supply schedule to describe the quantities a seller is willing to sell at different prices, and then translate the supply schedule into a supply curve that illustrates the law of supply. Created by Sal Khan.

GDP is the most commonly used measure of output, but it leaves some things out. Learn about the limitations of GDP in this video.

Thinking about how real GDP can drive real interest rates. Created by Sal Khan.

How do savers and borrowers find each other? In the market for loanable funds! In this video, learn how the demand of loanable funds and the supply of loanable funds interact to determine real interest rates.

We claim that aggregate supply is not responsive to changes in the price level in the long run, leading to a vertical long-run aggregate supply (LRAS) curve, but why? In this video we explore why aggregate supply may not be influenced by prices in the long-run. Created by Sal Khan.

A demand shock has a short-run effect on an output and unemployment, but in the long run only the price level will be impacted. If there is an increase in aggregate demand, the price level will go up. Once wages have adjusted to that inflation in the long run, SRAS decreases and returns the economy to full employment output. Shocks do not cause economic growth, only changes in full employment output cause economic growth.

Leveraging a diagram from the New York Times to look at trends in inflation adjusted income since 1980. Discussion of possible levers that could be driving the trends. Created by Sal Khan.

The expenditure and tax multipliers depend on how much people spend out of an additional dollar of income, which is called the marginal propensity to consume (MPC). In this video, explore the intuition behind the MPC and how to use the MPC to calculate the expenditure multiplier. Created by Sal Khan.

15.015 Macro and International Economics focuses on the policy and economic environment of firms. This subject divided in three parts. The first part of the course is a study of the closed economy and how monetary and fiscal policy interacts with employment, GNP, inflation, and interest rates. Next, the course provides an examination of national economic strategies for development and growth and recent financial and currency crises in emerging markets. Finally, the course addresses the problems faced by transition economies and the role of institutions both as the engine of growth, and as the constraints for policy.

Introduction to the theories of economic growth. Topics will include basic facts of economic growth and long-run economic development; brief overview of optimal control theory and dynamic programming; basic neoclassical growth model under a variety of market structures; human capital and economic growth; endogenous growth models; models with endogenous technology; models of directed technical change; competition, market structure and growth; financial and economic development; international trade and economic growth; institutions and economic development. This is a half-term subject. The class size is limited.

This is the second course in the four-quarter graduate sequence in macroeconomics. Its purpose is to introduce the basic models macroeconomists use to study fluctuations. Topics include the basic model or the consumption/saving choice, the RBC model or the labor/leisure choice, non-trivial investment decisions, two-good analysis, money, price setting, the “new Keynesian” model, monetary policy, and fiscal policy.

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(Note: This resource's metadata has been created automatically by reformatting and/or combining the information that the author initially provided as part of a bulk import process.)

These Guided Notes are note-taking frameworks for Macroeconomics, corresponding to OpenStax Macroeconomics 2e (or the corresponding chapters of OpenStax Principles of Economics). They contain the structure for students to actively engage with the material while in lecture or while reading.

The notes were authored by Kevin Cook of Des Moines Area Community College.