Week 2: Incomes and Long Run

Lecture Slides [ch03 pptx]

 

II. Income and Price Determination in the Long-Run

 

A. Static Model

1. Production and Employment

2. Demand and the Interest Rate

Required Readings:

                 Mankiw: ch. 3 National Income: Where It Comes From and Where It Goes

http://research.stlouisfed.org/publications/net/20040801/cover.pdf

Active Learning:

Production Function: Book making experiment