1. Chapter 3. National Income: Where it Comes From, Where it Goes Homework: p. 78-79 #1, 4a c, d; 10 macromodel: equilibrium_interest_rate 1, 3, 7 Won’t be responsible for the appendix. Link to syllabussyllabus

2. Fig. 3-1 p. 48. Circular Flow

3. Fig. 3-2 p. 54.The determination of the earnings of a factor of production.

4. Fig. 3-3 p. 56. The Slope of the Production Function.

5. Fig. 3-4 p. 56. The Marginal Product of Labor

6. Figure 3-5 p. 61. The ratio of labor income to total income In earlier edition, was in Appendix as Fig. 3-13 p. 73

7. Karabarbounis QJE 2014

8. Income Composition of Top Groups within the Top Decile, 1929 and 1998 (Piketty, QJE 2003)

9. Table 3-1 p. 63. Growth in Labor Productivity and Real Wages in the US Point is that these two move together, implying that productivity is the major determinant of wage income

10. Fig. 3-6, p. 65. The Consumption Function

11. Fig. 3-7 p. 66. The Investment Function

12. The prime interest rate and the Federal funds rate Different text Parallels the textbook’s discussion on page 67. Link to data from the Minneapolis FedFed

13. Fig. 3-8 p. 71. Savings, Investment, and the Real Interest Rate

14. Fig. 3-9 p. 72. A Reduction in Saving Gov’t spends more, National Savings declines, interest rates rise, private investment falls. “Crowding Out.” Bad guy.

15. Fig. 3-10 p. 73. Military Spending and Interest Rates in the U.K.

16. Fig. 3-11 p. 75. An Increase in Investment Demand: Fixed Savings

17. Fig. 3-12 p. 76 Increase in Investment Demand with Savings Responding to Interest Rates

18. Equilibrium in the Loanable Funds Market. Fig 10-4 p. 284 Econ 201 text: Krugman and Wells

19. Fig 15-3, p. 454. Equilibrium in the Money Market Econ 201 text: Krugman/Wells

20. Homework Problems P. 76 #1.In neoclassical model, how do these affect real wage and rental price of capital? a). Wave of immigrants. b. Earthquake destroys capital. C. Tech change #3. Changes in incomes of farmers and barbers (unskilled manual work): If Farmers have productivity gains, and barbers do not #9. If consumption (and therefore saving) depend on interest rate, how does that affect analysis of fiscal policy.

22. Appendix

23. Fig. 3-12, p. 67. The Identification Problem