1. ECON 103 Principles of Macroeconomics Instructor: Bernard Malamud –Office: BEH 502 Phone (702) 895 –3294 Fax: 895 – 1354 »Email: bernard.malamud@unlv.edu Website: www.unlv.edu/faculty/bmalamudwww.unlv.edu/faculty/bmalamud Office hours: MTWThF 9:30-11am; and by appointment

2. Macro Objectives Talk’n’ Economics –Vocabulary: GDP, Inflation, Debt, Supply, Demand…and much, much more Economic Facts –Descriptions of the US and world economies Economic Models –Simplifying a complex reality Economic Policy Analysis –Laissez – faire vs. activism The Economic Way of Thinking From micro: Incentives matter!

3. The Macroeconomy

4. Macro Concerns Jobs Growth Price Stability Government Budget Balance of Payments Exchange Value of Dollar

6. CBS Follies From Alexander Hamilton to Glenn Hubbard http://www.youtube.com/watch?v=NOQ4rwr- 0Ys&eurl=http://www0.gsb.columbia.edu/students/organizations/follies/Follies_Videos//Spring_07_files/widget1_markup.htmlhttp://www.youtube.com/watch?v=NOQ4rwr- 0Ys&eurl=http://www0.gsb.columbia.edu/students/organizations/follies/Follies_Videos//Spring_07_files/widget1_markup.html http://www.cbsfollies.com/ –Spring 2006

7. Macro Pictures: Jobs

8. Macro Pictures: Fluctuations

9. Macro Pictures: Unemployment

10. Macro Pictures: Growth

11. Macro Pictures: Prices

12. Macro Pictures: Core Prices

13. Macro Pictures: Exchange Rate

14. Macro Pictures: Payments Deficit

15. What We’ll Cover Macro measurement: output, income, employment, prices, inflation, interest rates Aggregate demand: C,I,G,NX … what’s bought Money … what’s spent Demand-side policies Aggregate supply: Short-run responses to prices Adjustment to long-run output potential Policy Debates Economic Growth

16. Micro Foundations: A Brief Review Production Possibilities Frontier Quantity of Computers Produced Quantity of Cars Produced A 0 B Feasible but Inefficient C D Production Possibilities Frontier  Efficient Points

17. Supply Demand Price of Ice-Cream Cone Quantity of Ice-Cream Cones Micro Foundations: A Brief Review Supply and Demand 2134567891012110 $3.00 2.50 2.00 1.50 1.00 0.50 Equilibrium

18. AS AD Price Index Real GDP Macroeconomics: Aggregate Demand and Aggregate Supply 2134567891012110 3.00 2.50 2.00 1.50 1.00 0.50 Potential Real GDP