1. C h a p t e r 1 Thinking About Macroeconomics
Macroeconomics - Barro Chapter 1

2. Output, Unemployment, and Prices in U.S. History
Macroeconomics - Barro Chapter 1

3. Output, Unemployment, and Prices in U.S. History
Growth rate of real GDP for year t=
(( Yt− Yt−1)/ Yt−1)− 1
Multiply by 100 to get the growth rate of real GDP in percent per year.
Macroeconomics - Barro Chapter 1

4. Output, Unemployment, and Prices in U.S. History
Macroeconomics - Barro Chapter 1

5. Output, Unemployment, and Prices in U.S. History
Macroeconomics - Barro Chapter 1

6. Output, Unemployment, and Prices in U.S. History
Macroeconomics - Barro Chapter 1

7. Output, Unemployment, and Prices in U.S. History
Inflation rate for year t =
(( Pt− P t−1)/ Pt−1) − 1
Macroeconomics - Barro Chapter 1

8. Output, Unemployment, and Prices in U.S. History
Macroeconomics - Barro Chapter 1

9. Macroeconomics - Barro Chapter 1
Economic Models
Endogenous variables are the ones that we want the model to explain.
Exogenous variables are the ones that a model takes as given and does not attempt to explain.
Macroeconomics - Barro Chapter 1

10. Macroeconomics - Barro Chapter 1
Economic Models
Macroeconomics - Barro Chapter 1

11. Economic Models The Coffee Market
Macroeconomics - Barro Chapter 1

12. Economic Models The Coffee Market
Macroeconomics - Barro Chapter 1

13. Economic Models The Coffee Market
Macroeconomics - Barro Chapter 1

14. Economic Models The Coffee Market
Macroeconomics - Barro Chapter 1

15. Economic Models The Coffee Market
Macroeconomics - Barro Chapter 1

16. Economic Models The Coffee Market
Macroeconomics - Barro Chapter 1

17. Macroeconomics - Barro Chapter 1
Economic Models
Disequilibrium a discrepancy between the quantities of labor demanded and supplied.
New Keynesian model, argues that some prices are sticky and move only slowly to equate the quantities of goods demanded and supplied.
Macroeconomics - Barro Chapter 1

18. Macroeconomics - Barro Chapter 1
Economic Models
Equilibrium business-cycle model - basic market-clearing model of economic fluctuations
Macroeconomics - Barro Chapter 1