Week 9 and 10: ISLM and AD/AS

Lecture Slides [ch10 pptx; ch11 pptx; ch12 pptx; ch13 pptx]

III. Income and Price Determination in the Short-Run

A. Introduction to Business Cycles

Required Readings:

                 Mankiw: ch. 10 - Introduction to Economic Fluctuations

 

Practice Problem Set #2: Understanding Aggregate Expenditures and the Multiplier

 

B. The IS-LM Model

Required Readings:

                 Mankiw: ch. 11 - Aggregate Demand I: Building the IS-LM Model

                

C. Business Cycle Theory/ Aggregate Supply

Required Readings:

                 Mankiw: ch. 12 - Aggregate Demand II: Applying the IS-LM Model

Active Learning: Worker misperception imperfect info experiment?

 

Required Readings:

Mankiw: ch. 13 - The Open Economy Revisited: The Mundell-Fleming Model and the Exchange-Rate Regime