1. Creating PowerPoint Lectures w/ Animation
presented by Eric Chiang
By Educators.
For Students.

2. Benefits of Animation:
1) Allows one to break down explanations, graphs, and models into steps
2) Replicates the viewing of the chalkboard in class
3) Allows students to review challenging concepts at home
4) Each slide serves as a template for the next

3. Aggregate Demand and Supply /
CoreMacro
Chapters 9 – 10
Aggregate Demand and Supply /
Fiscal Policy

4. 1. Promote Economic Growth

5. 2. Maintain Full Employment

6. 3. Achieve Price Stability

7. Three Well Functioning Markets
Capital Market
(interest rates)
Product Market
(prices)
Labor Market
(wages)

8. Economy stays on the long-run trend in the Classical Growth Model

9. Economy experiences business cycles in modern macro models

10. is affected by the price level
AD/AS model
shows how
aggregate output
is affected by the price level

11. AD/AS Model: Macro Equilibrium
LRAS
Price Level (P)
SRAS
Short-run macro equilibrium
Long-run macro equilibrium AD
Output

12. How does the AD/AS model
explain the
business cycle?

13. Negative Demand Shock LRAS Price Level (P) SRAS
Long-run macro equilibrium
Short-run
Eq. AD
AD2
Output
Output Gap

14. Option 1: Letting the Market Correct Itself over Time
LRAS
Price Level (P)
SRAS
SRAS2
Short-run
Eq.
Long-run Eq. AD
AD2
Output
Output Gap

15. Option 2: Using Expansionary Fiscal Policy to Shift AD
LRAS
Price Level (P)
SRAS
Long-run macro equilibrium
Short-run
Eq. AD
AD2
Output
Output Gap

16. Positive Demand Shock: Leads to Demand-Pull Inflation
LRAS
Price Level (P)
SRAS
Short-run equilibrium
Long-run macro equilibrium
AD2 AD
Output
Output Gap

17. Option 1: Letting the Market Correct Itself over Time
SRAS2
LRAS
Price Level (P)
SRAS
Short-run equilibrium
AD2 AD
Output

18. Option 2: Using Contractionary Fiscal Policy to Reduce Inflation
LRAS
Price Level (P)
SRAS
Short-run equilibrium
Long-run macro equilibrium
AD2 AD
Output
Output Gap

19. Negative Supply Shock: Leads to Cost-Push Inflation
SRAS2
LRAS
Price Level (P)
SRAS
Short-run equilibrium
Long-run macro equilibrium AD
Output
Output Gap

20. Maximizing Profit in Competition
CoreMicro
Chapters 8 – 9
Maximizing Profit in Competition
and Monopoly:
The 5 Step Approach

21. In a perfectly competitive market…MC
Find MR = MC
Find optimal Q
Find optimal P
Find ATC
Find Profit
ATC
$10
P = MR
Profit $7 20 Q

22. In a monopoly or monopolistically competitive market…MC
Find MR = MC
Find optimal Q
Find optimal P
Find ATC
Find Profit
ATC
$13
Profit $6 D MR 15 Q

23. i>clicker
Enhance your grade
with active participation

24. a b c d Macro Word of the Day “Multiplier Effect”
When word-of-mouth causes
products to become popular b
When a dollar spent generates
many more dollars of spending c
When you earn interest on
past interest earnings d
When you pay more in finance
charges than you borrowed

25. a b c d Macro Word of the Day “Multiplier Effect”
When word-of-mouth causes
products to become popular b
When a dollar spent generates
many more dollars of spending
QUESTION 1 c
When you earn interest on
past interest earnings
Loading Results… d
When you pay more in finance
charges than you borrowed

26. a b c d Famous Economist Ben Bernanke Timothy Geithner Austan Goolsbee
Alan Greenspan

27. Famous Building or Landmark
New York Stock Exchange b
Bureau of Labor Statistics c
U.S. Treasury d
Federal Reserve Bank

28. How long did our most recent recession officially last?
12 months b
18 months c
24 months d
This is a trick question:
the recession hasn’t ended

30. Is a person who lost a high paying job and temporarily working at a supermarket unemployed?
Yes, s/he is unemployed b
No, s/he is employed

32. willing to pay for one slice
How much are you
willing to pay for one slice
of pizza right now? a
$5.00 b
$3.50 c
$2.00 d
$1.00 e
$0.00

33. willing to pay for one slice
How much are you
willing to pay for one slice
of pizza right now? a
$5.00 b
$3.50
QUESTION 5 c
$2.00
Loading Results… d
$1.00 e
$0.00
4% % % % %

35. Suppose you do not work and have no income
Suppose you do not work and have no income. Besides basic necessities, how much do you need per month to get by? a
Less than $200 b
$400 c
$600 d
$800 e
$1,000 or more

36. Now suppose your rich aunt gives you $1,000/month to spend
Now suppose your rich aunt gives you $1,000/month to spend. How much of this new money would you spend? a
Less than $200 b
$400 c
$600 d
$800 e
$1,000 (all of it)

37. Aggregate Expenditures Model
(AE)
45º line: Y = AE C
DEBT
SAVINGS
Income (Y)

38. i>clicker
Enhance your grade
with active participation

39. a b Homer is fired from the power
plant and goes back to school to earn a college degree. Homer is: a
still part of the labor force b
not part of the labor force
Loading Results…

40. A business cycle recovery that doesn’t reach its long-term
trend can lead to: a
hyperinflation b
lower cyclical
unemployment c
its natural unemployment
rate d
a double dip recession

41. If the price index is 200, how much did a $4 Big Mac (today)
cost in the base year? a
$0.40 b
$1.00 c
$2.00 d
$8.00

42. By Educators. For Students.

43. By Educators. For Students.
My Contact Information:
Phone:
Web: ProfessorChiang.com
Twitter: @ProfessorChiang
Facebook.com/CoreEconomics
By Educators. For Students.