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Topics to be Familiar With Before Taking Graduate Macroeconomics - Return to list
Graphical analysis of:
- IS and LM curves
- Interaction of IS and LM curves
- Aggregate supply and demand curves
- Interaction of aggregate supply and demand curves
What are the balance of trade and balance of payments?
How do fixed and flexible exchange rate systems work?
How does monetary policy affect the inflation rate?
What are the sources of long-term economic growth?
How are government budget deficits financed?
How does an individual determine his or her:
- Money demand? (basics of Baumol - Tobin theory, etc.)
- Consumption spending? (permanent income hypothesis, life-cycle hypothesis)
How does the central bank affect the money supply?
- concept of money multiplier
How does a firm determine its investment spending?
- basics of Jorgenson's neoclassical theory and Tobin's q-theory
Recommended texts:
- Mankiw, Macroeconomics; Hall and Taylor, Macroeconomics.
