Categories
Macro Economics

1. Learning Journal Reflective Comments: Write short reflective comments or note

1. Learning Journal Reflective Comments:
Write short reflective comments or notes about your learning activities during the week. It is highly recommended that you make these entries on a daily basis. You will be assessed on the completeness of your Learning Journal, and the quality of your self-reflection.
You should date each entry, and use clear titles and sub-headings. These entries should be brief, direct sentences indicating quick comments or notes such as:
* when you completed each step in the Learning Guide during the week,
* any problems or unexpected events that occurred during the week (including
problems understanding new or old material), and
* any other noteworthy that might affect your performance in this class.
There is no need to include personal information or details of family events, but be sure to mention the existence of any situations that will positively or negatively affect your ability to focus on the classwork.
2. Vocabulary and R functions
We are now covering material that is not common knowledge, and it is now very important to include citations when you use an idea from another source (book, Internet, etc). Be sure to add a citation and reference entry for the definition questions below.
a) What is an exponential distribution (include an APA citation)? ___________________________
b) When would you use an exponential distribution? ________________________
c) What is a binomial distribution (include an APA citation)?_______________________
d) When would you use a binomial distribution? ___________________
3. Task
Run these commands in R, then use your own words to describe what the resulting numbers represent. You can get some information about the functions by using the help commands in R (such as ?pbinom to get information about the pbinom() command in R):
a) pbinom(q=5, size=10, prob=1/6)
b)
n=10
p=.5
x=9
pbinom(x, n, p)
c) punif(5, min=1, max=10) – punif(4, min=1, max=10)
Reading Assignment
Yakir, B. (2011). Introduction to statistical thinking (with R, without calculus). The Hebrew University of Jerusalem, Department of Statistics.
For this week you should read all of Chapter 5 of the textbook. When you read the text that involves running R script you are expected to run the code by yourself on your computer, in parallel to reading it in the textbook, and compare what you get with the output presented in the textbook.
Chapter 5: Random Variables
Section 5.1 Student Learning Objectives
Section 5.2 Discrete Random Variables
5.2.1 The Binomial Random Variable
5.2.2 The Poisson Random Variable
Section 5.3 Continuous Random Variable
5.3.1 Uniform Random Variable
5.3.2 Exponential Random Variable
Section 5.4 Solved Exercises
Section 5.5 Summary
Video Resources
MarinStatsLectures-R Programming & Statistics. (2013, August 24). Binomial distribution in R | R Tutorial 3.1| MarinStatsLectures [Video]. Youtube.
MarinStatsLectures-R Programming & Statistics. (2013, August 25). Poisson distribution in R | R Tutorial 3.2 | MarinStatsLectures [Video]. Youtube
Reading Assignment
Yakir, B. (2011). Introduction to statistical thinking (with R, without calculus). The Hebrew University of Jerusalem, Department of Statistics.
For this week you should read all of Chapter 5 of the textbook. When you read the text that involves running R script you are expected to run the code by yourself on your computer, in parallel to reading it in the textbook, and compare what you get with the output presented in the textbook.
Chapter 5: Random Variables
Section 5.1 Student Learning Objectives
Section 5.2 Discrete Random Variables
5.2.1 The Binomial Random Variable
5.2.2 The Poisson Random Variable
Section 5.3 Continuous Random Variable
5.3.1 Uniform Random Variable
5.3.2 Exponential Random Variable
Section 5.4 Solved Exercises
Section 5.5 Summary
Video Resources
MarinStatsLectures-R Programming & Statistics. (2013, August 24). Binomial distribution in R | R Tutorial 3.1| MarinStatsLectures [Video]. Youtube.
MarinStatsLectures-R Programming & Statistics. (2013, August 25). Poisson distribution in R | R Tutorial 3.2 | MarinStatsLectures [Video]. Youtube.

Categories
Macro Economics

Discussion of the WeekOne practical limitation with Keynesian economics is the c

Discussion of the WeekOne practical limitation with Keynesian economics is the challenge of implementing active economic policy quickly. One practical limitation of the Classical or Neoclassical model is that it suggests allowing the economy to self-correct in the long run, but recessions may last a very long time.
For each challenge (limitation), discuss how severe you think these problems are? Explain, and provide an example.
Discussion Requirements
Your discussion should be at least 250 words in length, but not more than 500 words. Cite your work and provide references at the end. Once you’ve completed your initial post.
Refer to the UoPeople APA Tutorials in the LRC for help in APA citations.
Learning Guide Unit 5
Learning Guide Unit 5
Neoclassical Economics
Watch: What is Neoclassical Economics?
Similar to the original classical theory, the neoclassical theory postulates that an economy would always self-adjust to equilibrium. It builds on classical theories by specifying that an equilibrium would be reached rather quickly because producers and consumers are rational, and any adjustments would be almost instantaneous. Because it is believed that recessions are just a blip, and would quickly self-correct, the emphasis here is on long-term growth and reducing the natural (long-term) rate of unemployment, rather than on fighting recessions and reducing cyclical unemployment. Because the focus is on the long run, the aggregate supply (AS) and Phillips curves are assumed to be always vertical.
Reading AssignmentRead
Chapter 13: The Neoclassical Perspective
ReferencesBrad Cartwright. (2020, Sept 19). What is neoclassical economics? | Explained | New IB economics syllabus | IB microeconomics [Video]. YouTube.
Geenlaw, S., & Shapiro, D. (2017). The neoclassic perspective. In Principals of macroeconomics 2e. Openstax. https://openstax.org/details/books/principles-macroeconomics-2e
Functions of Money
Watch: How Banks Create Money Out of Thin Air
This Unit also defines money and explains its functions as a medium of exchange, store of value, a unit of account, and a means of deferred payment. Money that has intrinsic value (value on its own), like gold and silver, is referred to as commodity money. If it only has value because it is a government tender then it is referred to as fiat money. The physical amount of money in an economy is controlled by that nation’s central bank. In the US it is the Federal Reserve System, commonly referred to as the Fed. The amount of money that exists in an economy is represented by the sum of the total amount of currency, deposits, and travelers’ checks and is quite different from the physical amount of money due to the number of loans issued by banks.
Reading AssignmentRead
Chapter 14: Money and Banks
ReferencesGeenlaw, S., & Shapiro, D. (2017). Money and banks. In Principals of macroeconomics 2e. Openstax. https://openstax.org/details/books/principles-macroeconomics-2e
Daniels, J. (2021, June 18). How Banks Create Money Out of Thin Air – How Money Is Created – Fractional Reserve – FED, Central [Video]. YouTube.

Categories
Macro Economics

Written Assignment Instructions In this assignment, you will apply your knowledg

Written Assignment Instructions
In this assignment, you will apply your knowledge of how banks create money. Relevant knowledge is important because money creation affects all aspects of the economy and is fundamental for the functioning of society.
Suppose that the required reserve ratio is 10 percent and you withdraw $25,000 from Comerica Bank.
What is the deposit multiplier?
What is the total decrease in deposits in the banking system?
What is the change in the money supply?
You will be assessed on the following:
The deposit multiplier is accurately described in detail.
The decrease in deposits is accurately explained in detail.
The change in money supply is accurately explained in detail.
The writing is clear and organized, and APA format is correct.
Learning Guide Unit 5
Learning Guide Unit 5
NEOCLASSICAL ECONOMICS
WATCH: WHAT IS NEOCLASSICAL ECONOMICS?
Similar to the original classical theory, the neoclassical theory postulates that an economy would always self-adjust to equilibrium. It builds on classical theories by specifying that an equilibrium would be reached rather quickly because producers and consumers are rational, and any adjustments would be almost instantaneous. Because it is believed that recessions are just a blip, and would quickly self-correct, the emphasis here is on long-term growth and reducing the natural (long-term) rate of unemployment, rather than on fighting recessions and reducing cyclical unemployment. Because the focus is on the long run, the aggregate supply (AS) and Phillips curves are assumed to be always vertical.
READING ASSIGNMENTRead
Chapter 13: The Neoclassical Perspective
REFERENCESBrad Cartwright. (2020, Sept 19). What is neoclassical economics? | Explained | New IB economics syllabus | IB microeconomics [Video]. YouTube.
Geenlaw, S., & Shapiro, D. (2017). The neoclassic perspective. In Principals of macroeconomics 2e. Openstax. https://openstax.org/details/books/principles-macroeconomics-2e
FUNCTIONS OF MONEY
WATCH: HOW BANKS CREATE MONEY OUT OF THIN AIR
This Unit also defines money and explains its functions as a medium of exchange, store of value, a unit of account, and a means of deferred payment. Money that has intrinsic value (value on its own), like gold and silver, is referred to as commodity money. If it only has value because it is a government tender then it is referred to as fiat money. The physical amount of money in an economy is controlled by that nation’s central bank. In the US it is the Federal Reserve System, commonly referred to as the Fed. The amount of money that exists in an economy is represented by the sum of the total amount of currency, deposits, and travelers’ checks and is quite different from the physical amount of money due to the number of loans issued by banks.
READING ASSIGNMENTRead
Chapter 14: Money and Banks
REFERENCESGeenlaw, S., & Shapiro, D. (2017). Money and banks. In Principals of macroeconomics 2e. Openstax. https://openstax.org/details/books/principles-macroeconomics-2e
Daniels, J. (2021, June 18). How Banks Create Money Out of Thin Air – How Money Is Created – Fractional Reserve – FED, Central [Video]. YouTube.

Categories
Macro Economics

Learning Journal Activity: M1 and M2 are two measures of money supply. M1 includ

Learning Journal Activity:
M1 and M2 are two measures of money supply. M1 includes only the most liquid forms of money like currency, checking account deposits, and traveler’s checks. M2 includes all of M1 along with some less liquid forms of money like savings accounts and money market deposits. This assignment requires the application of your knowledge of the money supply. Think about the impact of changes in money supply on the economy.
Suppose you transfer $2,000 from your mutual fund account to your checking account. What is the immediate impact of this transfer on M1 and M2?
The Learning Journal Activity entry should be a minimum of 500 words and not more than 750 words. Use APA citations and references if you use ideas from the readings or other sources.Learning Guide Unit 5
Learning Guide Unit 5
NEOCLASSICAL ECONOMICS
WATCH: WHAT IS NEOCLASSICAL ECONOMICS?
Similar to the original classical theory, the neoclassical theory postulates that an economy would always self-adjust to equilibrium. It builds on classical theories by specifying that an equilibrium would be reached rather quickly because producers and consumers are rational, and any adjustments would be almost instantaneous. Because it is believed that recessions are just a blip, and would quickly self-correct, the emphasis here is on long-term growth and reducing the natural (long-term) rate of unemployment, rather than on fighting recessions and reducing cyclical unemployment. Because the focus is on the long run, the aggregate supply (AS) and Phillips curves are assumed to be always vertical.
READING ASSIGNMENTRead
Chapter 13: The Neoclassical Perspective
REFERENCESBrad Cartwright. (2020, Sept 19). What is neoclassical economics? | Explained | New IB economics syllabus | IB microeconomics [Video]. YouTube.
Geenlaw, S., & Shapiro, D. (2017). The neoclassic perspective. In Principals of macroeconomics 2e. Openstax. https://openstax.org/details/books/principles-macroeconomics-2e
FUNCTIONS OF MONEY
WATCH: HOW BANKS CREATE MONEY OUT OF THIN AIR
This Unit also defines money and explains its functions as a medium of exchange, store of value, a unit of account, and a means of deferred payment. Money that has intrinsic value (value on its own), like gold and silver, is referred to as commodity money. If it only has value because it is a government tender then it is referred to as fiat money. The physical amount of money in an economy is controlled by that nation’s central bank. In the US it is the Federal Reserve System, commonly referred to as the Fed. The amount of money that exists in an economy is represented by the sum of the total amount of currency, deposits, and travelers’ checks and is quite different from the physical amount of money due to the number of loans issued by banks.
READING ASSIGNMENTRead
Chapter 14: Money and Banks
REFERENCESGeenlaw, S., & Shapiro, D. (2017). Money and banks. In Principals of macroeconomics 2e. Openstax. https://openstax.org/details/books/principles-macroeconomics-2e
Daniels, J. (2021, June 18). How Banks Create Money Out of Thin Air – How Money Is Created – Fractional Reserve – FED, Central [Video]. YouTube.

Categories
Macro Economics

Briefly describe the primary components of monetary policy and what tools are av

Briefly describe the primary components of monetary policy and what tools are available to manipulate portions of the macroeconomy.

Briefly describe the primary components of fiscal policy. Provide three examples of fiscal policy and its influence on the macroeconomy.

Explain the concept of “crowding out” and how that can negatively affect the U.S. economy in the future. Make sure to include the role of government expenditures and investments in your explanation.

How does the large size of the U.S. governmental deficit and overall debt present a macroeconomic challenge in the upcoming years? Provide three examples of tough choices in the near future.

How does velocity have a role in the overall performance of an economy? Make sure to include the role of the money multiplier effect in your explanation.

What are the advantages and disadvantages of a strong dollar and a weak dollar? Make sure to cite the proportion of the US import-export variables in relation to its overall GDP in your explanation.

How are “stickiness” and Keynesianism related? Cite several examples that explain the connection. Also, make sure to explain how conditions may either be similar or different from the days of Keynes to our present-day challenges.

Categories
Macro Economics

Briefly describe the primary components of monetary policy and what tools are av

Briefly describe the primary components of monetary policy and what tools are available to manipulate portions of the macroeconomy.

Briefly describe the primary components of fiscal policy. Provide three examples of fiscal policy and its influence on the macroeconomy.

Explain the concept of “crowding out” and how that can negatively affect the U.S. economy in the future. Make sure to include the role of government expenditures and investments in your explanation.

How does the large size of the U.S. governmental deficit and overall debt present a macroeconomic challenge in the upcoming years? Provide three examples of tough choices in the near future.

How does velocity have a role in the overall performance of an economy? Make sure to include the role of the money multiplier effect in your explanation.

What are the advantages and disadvantages of a strong dollar and a weak dollar? Make sure to cite the proportion of the US import-export variables in relation to its overall GDP in your explanation.

How are “stickiness” and Keynesianism related? Cite several examples that explain the connection. Also, make sure to explain how conditions may either be similar or different from the days of Keynes to our present-day challenges.

Categories
Macro Economics

Written Assignment InstructionsThe writing assignment requires applying your kno

Written Assignment InstructionsThe writing assignment requires applying your knowledge of how shifts in aggregate demand (AD) and aggregate supply (AS) affect the economy. Relevant knowledge is important because shifts in AD and AS affect all aspects of an economy, including output and unemployment.
Using aggregate demand and aggregate supply, explain what happens in the short run if the Federal Reserve raises interest rates in the economy? Assume that the economy is at full employment before the interest rate increase. Be sure to detail what happens to:
aggregate demand
the price level
the level of GDP
and unemployment.
You will be assessed on the following:
explanation of what happens with the aggregate demand in the short run if the Federal Reserve raises interest rates in the economy
explanation of what happens with the price level in the short run if the Federal Reserve raises interest rates in the economy
explanation of what happens with the level of GDP in the short run if the Federal Reserve raises interest rates in the economy
explanation of what happens with the unemployment rate in the short run if the Federal Reserve raises interest rates in the economy
clarity and APA guidelines
AD and AS Model
Watch: Aggregate DemandThis unit introduces one of the staples of macroeconomic modeling: The Aggregate Demand and Aggregate Supply model (AD/AS model) that represents the foundation of modern macroeconomic analysis in the short and long run. AD represents the total product demand in the economy. AS represents the total product supply. In equilibrium those are equal. Fluctuations of AD represent one of the main outcomes of business cycles. AD increases in expansions and decreases in recessions. In the short-run equilibrium, Aggregate Demand (AD) = Short Run Aggregate Supply (SRAS); but the Short Run Aggregate Supply (SRAS) may depend on price levels (or interest rates). The Long-Run Aggregate Supply (LRAS) represents the productive capacity of the economy and is determined by the level of technology, as well as the amounts of capital and labor. In a long-run equilibrium, AD=LRAS=SRAS. What determines the levels of aggregate demand and aggregate supply? This is important to consider, as fluctuations in both aggregate demand and aggregate supply may result in deep recessions.­­­
Reading AssignmentRead
Read Ch. 11: The Aggregate Demand / Aggregate Supply Model
Watch
Aggregate Demand and Supply Practice
Aggregate Demand and Supply Practice
ReferencesClifford, J. (2020, October 7). Aggregate demand- macro topic 3.1 [Video]. YouTube.
Clifford, J. (2020, October 14). Aggregate supply- macro topics 3.3 and 3.4 [Video]. YouTube.
Clifford, J. (2017, October 31). Aggregate demand and supply practice- macro topic 3.5 and 3.6 [Video]. YouTube.
Geenlaw, S. & Shapiro, D. (2017). Chapter 11 | The aggregate demand/aggregate supply model. In Principals of macroeconomics 2e. Openstax. Licensed under CC-BY 4.0. https://openstax.org/details/books/principles-macroeconomics-2e

Categories
Macro Economics

Written Assignment InstructionsThe writing assignment requires applying your kno

Written Assignment InstructionsThe writing assignment requires applying your knowledge of how shifts in aggregate demand (AD) and aggregate supply (AS) affect the economy. Relevant knowledge is important because shifts in AD and AS affect all aspects of an economy, including output and unemployment.
Using aggregate demand and aggregate supply, explain what happens in the short run if the Federal Reserve raises interest rates in the economy? Assume that the economy is at full employment before the interest rate increase. Be sure to detail what happens to:
aggregate demand
the price level
the level of GDP
and unemployment.
You will be assessed on the following:
explanation of what happens with the aggregate demand in the short run if the Federal Reserve raises interest rates in the economy
explanation of what happens with the price level in the short run if the Federal Reserve raises interest rates in the economy
explanation of what happens with the level of GDP in the short run if the Federal Reserve raises interest rates in the economy
explanation of what happens with the unemployment rate in the short run if the Federal Reserve raises interest rates in the economy
clarity and APA guidelines
AD and AS Model
Watch: Aggregate DemandThis unit introduces one of the staples of macroeconomic modeling: The Aggregate Demand and Aggregate Supply model (AD/AS model) that represents the foundation of modern macroeconomic analysis in the short and long run. AD represents the total product demand in the economy. AS represents the total product supply. In equilibrium those are equal. Fluctuations of AD represent one of the main outcomes of business cycles. AD increases in expansions and decreases in recessions. In the short-run equilibrium, Aggregate Demand (AD) = Short Run Aggregate Supply (SRAS); but the Short Run Aggregate Supply (SRAS) may depend on price levels (or interest rates). The Long-Run Aggregate Supply (LRAS) represents the productive capacity of the economy and is determined by the level of technology, as well as the amounts of capital and labor. In a long-run equilibrium, AD=LRAS=SRAS. What determines the levels of aggregate demand and aggregate supply? This is important to consider, as fluctuations in both aggregate demand and aggregate supply may result in deep recessions.­­­
Reading AssignmentRead
Read Ch. 11: The Aggregate Demand / Aggregate Supply Model
Watch
Aggregate Demand and Supply Practice
Aggregate Demand and Supply Practice
ReferencesClifford, J. (2020, October 7). Aggregate demand- macro topic 3.1 [Video]. YouTube.
Clifford, J. (2020, October 14). Aggregate supply- macro topics 3.3 and 3.4 [Video]. YouTube.
Clifford, J. (2017, October 31). Aggregate demand and supply practice- macro topic 3.5 and 3.6 [Video]. YouTube.
Geenlaw, S. & Shapiro, D. (2017). Chapter 11 | The aggregate demand/aggregate supply model. In Principals of macroeconomics 2e. Openstax. Licensed under CC-BY 4.0. https://openstax.org/details/books/principles-macroeconomics-2e

Categories
Macro Economics

Learning Journal Activity: The Phillips curve represents the relationship betwe

Learning Journal Activity:
The Phillips curve represents the relationship between unemployment and inflation. This assignment requires the application of your understanding of the Phillips curve and motivates you to think about the impact on the economy of movements along the curve.
If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips curve predict that the inflation rate will be changing, if at all? What will happen if the unemployment rate now rises to 7 percent per year? Assume there are no changes to inflation expectations. Provide an appropriate graph to support your discussion.
The Learning Journal Activity entry should be a minimum of 500 words and not more than 750 words. Use APA citations and references if you use ideas from the readings or other sources.AD and AS Model
Watch: Aggregate DemandThis unit introduces one of the staples of macroeconomic modeling: The Aggregate Demand and Aggregate Supply model (AD/AS model) that represents the foundation of modern macroeconomic analysis in the short and long run. AD represents the total product demand in the economy. AS represents the total product supply. In equilibrium those are equal. Fluctuations of AD represent one of the main outcomes of business cycles. AD increases in expansions and decreases in recessions. In the short-run equilibrium, Aggregate Demand (AD) = Short Run Aggregate Supply (SRAS); but the Short Run Aggregate Supply (SRAS) may depend on price levels (or interest rates). The Long-Run Aggregate Supply (LRAS) represents the productive capacity of the economy and is determined by the level of technology, as well as the amounts of capital and labor. In a long-run equilibrium, AD=LRAS=SRAS. What determines the levels of aggregate demand and aggregate supply? This is important to consider, as fluctuations in both aggregate demand and aggregate supply may result in deep recessions.­­­
Reading AssignmentRead
Read Ch. 11: The Aggregate Demand / Aggregate Supply Model
Watch
Aggregate Demand and Supply Practice
Aggregate Demand and Supply Practice
ReferencesClifford, J. (2020, October 7). Aggregate demand- macro topic 3.1 [Video]. YouTube. Clifford, J. (2020, October 14). Aggregate supply- macro topics 3.3 and 3.4 [Video]. YouTube. Clifford, J. (2017, October 31). Aggregate demand and supply practice- macro topic 3.5 and 3.6 [Video]. YouTube. Geenlaw, S. & Shapiro, D. (2017). Chapter 11 | The aggregate demand/aggregate supply model. In Principals of macroeconomics 2e. Openstax. Licensed under CC-BY 4.0. https://openstax.org/details/books/principles-macroeconomics-2e
Keynesian Perspective
Watch: The Phillips Curve You will delve further into the AD-AS model as you learn about Keynesian economics and the components of AD and why it is more likely to be the primary cause of recessions. This unit also introduces the Philips curve. As you think about inflation and unemployment, please note that (in most cases) they are negatively (inversely) related. Graphically, the negative relationship is represented by the Phillips curve. Broadly speaking, the more people have jobs (the lower the unemployment), the more people have income, the greater the aggregate expenditure, the greater the aggregate demand, the more consumers bid up prices, the greater the inflation rate. Please follow the links below to several videos that elaborate on this topic.
Reading Assignment
Read
Read Ch 12: The Keynesian Perspective References
Geenlaw, S., & Shapiro, D. (2017). Chapter 12 | The Keynesian perspective. In Principals of macroeconomics 2e. Openstax. Licensed under CC BY 4.0. https://openstax.org/details/books/principles-macr…
You Will Love Economics. (2018, Feb 12). Macro: Unit 3.6 — The Phillips Curve [Video]. YouTube.

Categories
Macro Economics

Communism, socialism, and capitalism (will also be referred to as free markets)

Communism, socialism, and capitalism (will also be referred to as free markets) are popular terms used on many social media platforms but do people really know the difference or what they are? How much do you know about economic systems like communism, socialism, and capitalism? Go on an explorative inquiry and see what you discover regarding economic systems. Please cite your sources.
What are the 3 key economic questions?
Define communism and what countries have adopted this system either current or historic.
Define socialism and what countries have adopted this system either current or historic.
Define capitalism (free markets) and what countries have adopted this system either current or historic.
In your search is there any country that is purely a communist, socialist, or capitalist country? If so, please share. If not, please share why not.
We learned in the first class that we study economics because of scarcity (limited amount of resources that meet our unlimited needs and wants). Though this may seem like a simple concept, keep in mind that there are billions of scarce resources that produce everything we consume from bread, hand sanitizers, refrigerators, smart phones, and automobiles. And someone and something must determine what is going to be produced, how it’s going to be produced, and how the price of each good or service? Think of your car. Some questions should pop up in your head like “How was a car made?” and “What did it take to make that car?”. Obviously, we think about assembly lines but look at the unseen of all the millions of resources and steps that had to take place to get to the assembly line. Or take a trip to your local grocery store, which is stocked with 50,000 different goods. What did it take to get them all there? To that end, please answer the following questions using the 3 key economic questions (What will be produced? How will it be produced? and How will the output society produces be distributed?) for each economic system.Communism
Socialism
Capitalism