By the end of this section, you will be able to:

Explain real GDP, recessionary gaps, and inflationary gaps
Recognize the Keynesian AD/AS model
Identify the determining factors of both consumption expenditure and investment expenditure
Analyze the factors that determine government spending and net exports

By the end of this section, you will be able to:

Evaluate the Keynesian view of recessions through an understanding of sticky wages and prices and the importance of aggregate demand
Explain the coordination argument, menu costs, and macroeconomic externality
Analyze the impact of the expenditure multiplier

By the end of this section, you will be able to:

Explain the Keynesian perspective on market forces
Analyze the role of government policy in economic management

By the end of this section, you will be able to:

Explain the Phillips curve, noting its impact on the theories of Keynesian economics
Graph a Phillips curve
Identify factors that cause the instability of the Phillips curve
Analyze the Keynesian policy for reducing unemployment and inflation

By the end of this section, you will be able to:Contrast nominal GDP and real GDPExplain GDP deflatorCalculate real GDP based on nominal GDP values

By the end of this section, you will be able to:Explain how we can use GDP to compare the economic welfare of different nationsCalculate the conversion of GDP to a common currency by using exchange ratesCalculate GDP per capita using population data

By the end of this section, you will be able to:Discuss how productivity influences the standard of livingExplain the limitations of GDP as a measure of the standard of livingAnalyze the relationship between GDP data and fluctuations in the standard of living

This module covers:Measuring the Size of the Economy: Gross Domestic ProductAdjusting Nominal Values to Real ValuesTracking Real GDP over TimeComparing GDP among CountriesHow Well GDP Measures the Well-Being of Society

By the end of this section, you will be able to:Identify the components of GDP on the demand side and on the supply sideEvaluate how economists measure gross domestic product (GDP)Contrast and calculate GDP, net exports, and net national product

By the end of this section, you will be able to:Explain recessions, depressions, peaks, and troughsEvaluate the importance of tracking real GDP over time

By the end of this section, you will be able to:

Evaluate how neoclassical economists and Keynesian economists react to recessions
Analyze the interrelationship between the neoclassical and Keynesian economic models

By the end of this section, you will be able to:

Explain the importance of potential GDP in the long run
Analyze the role of flexible prices
Interpret a neoclassical model of aggregate demand and aggregate supply
Evaluate different ways for measuring the speed of macroeconomic adjustment

By the end of this section, you will be able to:

Discuss why and how economists measure inflation expectations
Analyze the impacts of fiscal and monetary policy on aggregate supply and aggregate demand
Explain the neoclassical Phillips curve, noting its tradeoff between inflation and unemployment
Identify clear distinctions between neoclassical economics and Keynesian economics